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Income Tax Appellate Tribunal, CUTTACK BENCH, CUTTACK
Before: SHRI N.S. SAINI & SHRI KULDIP SINGH
PER KULDIP SINGH, JUDICIAL MEMBER : The Appellant, Kuni Samantray (hereinafter referred to as
‘the assessee’) by filing the aforesaid appeal sought to set aside the
order dated 29.01.2015 passed by the Commissioner of Income-tax
(Appeals), Cuttack qua the assessment year 2013-14 on the
grounds inter alia that :-
“1. For that under the facts and circumstances of the case the addition of Rs.41,50,242/- under head “Income Suppressed” as made is arbitrary uncalled for and unjustified.
ITA No.144/CTK./2014 2
For that the learned AO should have given proper opportunity to explain the queries raised by him.
For that the alleged suppress income as calculated is also improper.
For that the learned Commissioner is wholly unjustified to confirm the assessment and to dismiss the appeal.
For that the learned Commissioner failed to appreciate the contentions furnished by the appellant.”
Briefly stated the facts necessary for adjudication of the
controversy at hand are : Assessing Officer made an addition of
Rs.41,50,242/- on account of deliberately suppressed income on
the ground that the assessee has failed to produce relevant
documents / bank statement regarding gross collection of
Rs.1,35,02,430/-.
Assessee carried the matter by way of filing an appeal before
the ld. CIT (A) who has dismissed the appeal. Feeling aggrieved,
the assessee has come up before the Tribunal by filing the present
appeal.
We have heard the ld. Authorized Representatives of the
parties to the appeal, gone through the documents relied upon and
orders passed by the revenue authorities below in the light of the
facts and circumstances of the case.
ITA No.144/CTK./2014 3
Undisputedly, the assessee has declared gross collection of
Rs.93,52,188/- with net income of Rs.13,18,540/-. Assessee
claimed TDS of Rs.14,04,066/- in the return of income. However,
AO noticed a sum of Rs.1,35,02,430/- having been credited in the
name of the assessee by IL&FS Ecosmart Ltd., (TAN
DEL106904C), D – 64, Defence Colony, New Delhi – 110 024.
AO tried to get the confirmation from IL&FS Ecosmart Ltd. but
received no reply. AO, during assessment proceedings, issued a
detailed show-cause notice to the assessee which is reproduced as
under for ready reference :-
"In course of assessment proceedings U/s. 143(3) of the I.T. Act, 1961, for the assessment year 2011-12, it is found that as per your return of income you declared gross receipt of Rs.93,52, 188/-, Net income Rs.13,18,540/-, T.D.S. Rs.14,04,066/- with a claim of refund of Rs.11,47,020/-. As per audited report, the assessee had been maintaining books of account in mercantile system. Your gross income shows Rs.93,52,188/-, Net income Rs.13,18,540/- as per audit report. On examination of T.D.S. Certificate filed by your A/R issued by IL & FS Ecosmart Limited, D-64, Defence Colony, New Delhi-I 10024, it is seen the assessee received as below:
Sl. Period Amount Amount of Date of No. paid TDS credit 1. 01.04.2010 to 53,82,271 5,92,049 30.04.2010 30.06.2010 2. 01.07.2010 to 13,56,928 1,35,693 04.08.2010 30.09.2010 3. 01.01.2011 to 37,64,921 3,76,493 23.03.2011 31.03.2011 Total 1,05,04,120 11,04,235
TDS Certificate for the period from 01.10.2010 to 31.12.2010 not produced.
ITA No.144/CTK./2014 4
But as per TDS statement 26 AS, it is found you received a sum of Rs.l,35,02,430/- from the period from 01.04.2010 to 31.03.2010 with deduction of tax source u/s. 194J of Rs.14,04,066/- which you claimed in your return of income. From the above fact and findings ( it is seen the actual T.D.S. made by I.L. & F.S. Ecosmart Ltd., TAN: DEL106904), it is clear that you got credit/received of Rs.1,35,02,430/- with TDS of Rs.14,04,066/- u/s 194J as for consultancy job, you declared gross receipt of Rs.93,52,188/- in your return of income with the claim of T.D.S. of Rs.14,04,066/-. As you maintain books of account, as per Mercantile System, as per audit report, you failed to produce the relevant documents/ bank statement regarding gross collection of Rs.1,35,02,430/-, you are asked to show cause why the amount of Rs.41,50,242/- (1,35,02,430 - 93,52,188 ) shall not be treated as suppressed income and added to net profit. Your reply should reach to the undersigned within 10 days from the date of receipt of this letter."
However, the assessee has failed to bring on record any
documentary evidence to support her claim.
Now, the ld. AR for the assessee contended that the ld. AO
has not given adequate opportunity of being heard to the assessee
to produce all the documents including confirmation from IL&FS
Ecosmart Ltd.. Since the books of accounts are being maintained
by the assessee in due course of business and having not been
rejected by the AO, we are of the considered view that adequate
opportunity of being heard is required to be provided to the
assessee. Even ld. DR has not raised any objection for granting
fresh opportunity to the assessee.
ITA No.144/CTK./2014 5
In view of what has been discussed above, present appeal
filed by the assessee is allowed for statistical purposes and
impugned order passed by the ld. CIT (A) is set aside and file is
restored to the AO to decide afresh after providing an opportunity
of being heard to the assessee. Order pronounced in open court on this 27th day of April, 2017 after the conclusion of the hearing.
Sd/- sd/- (N.S. SAINI) (KULDIP SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated the 27th day of May, 2017 TS
Copy of the order forwarded to: 1.Appellant - Kuni Samantray, 413 B/1, Mangla Sahi, Alisha Bazar, Cuttack – 753 002. 2.Respondent - ITO, Ward 2 (4), Cuttack. 3.CIT, Cuttack 4.CIT (A), Cuttack. 5.DR(ITAT), Cuttack. 6.Guard File //True Copy//
BY ORDER
SR. PRIVATE SECRETARY, ITAT, CUTTACK