SUMIT CHAWLA,DELHI vs. ITO,WARD-63(2), NEW DELHI

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ITA 1523/DEL/2023Status: DisposedITAT Delhi04 December 2023AY 2010-11Bench: SHRI CHALLA NAGENDRA PRASAD (Judicial Member)4 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal observed that the letter from Asian TV Network Pvt. Ltd. was dated on the same day as the assessment completion and was not put to the assessee. Therefore, the matter was restored to the AO for further inquiries, including recording the statement of the Director of Asian TV Network Pvt. Ltd. and providing cross-examination to the assessee.

What were the facts?

The Assessing Officer added contractual payments of Rs. 60,66,702/- to the assessee's income based on a letter from Asian TV Network Pvt. Ltd., despite the assessee denying receipt of such payments. The CIT(Appeals) upheld this addition.

What were the issues?

Whether the addition of contractual payments was justified without proper opportunity for cross-examination and without placing the evidence before the assessee during assessment. Whether the penalty under Section 271B was sustainable when the quantum addition was restored.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 147,Section 271B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “SMC” NEW DELHI

Before: SHRI CHALLA NAGENDRA PRASAD

Hearing: 05.09.2023

आदेश /O R D E R

1.

These two appeals are filed by the assessee against different orders of Ld.CIT(Appeals)-NFAC dated 15.05.2023 and 16.08.2022 for the AY 2010-11 in respect of confirming the addition on account of alleged receipt of contractual payments by the assessee from Asian TV Network Pvt. Ltd. and also levying penalty u/s 271B of the Act.

I.T.A.Nos.1787 & 1523/Del/2023

2.

Brief facts are that the Assessing Officer (for short “AO”) while completing the assessment u/s 143(3) read with sec. 147 dated 05.12.2017 treated Rs.60,66,702/- as income of the assessee being contractual receipts from Asian TV Network P. Ltd. on the ground that the said party has made payment to the assessee and also deducted TDS. In the course of assessment proceedings the AO denied any receipt of contractual payments from Asian TV Network P. Ltd. assessee also filed an affidavit to that extent. However, the AO concluded that the assessee has received Rs.60,66,702/- from Asian TV Network P. Ltd. and accordingly addition was made.

3.

On appeal the Ld.CIT(A) sustained the same.

4.

Before me the Ld. Counsel for the assessee submits that the assessee has never received any amount from Asian TV Network P.

Ltd. and the alleged enquiries said to have been made and confirmed by the Asian TV Network P. Ltd. in its letter dated 05.10.2017 that the assessee has raised invoice and they have deducted TDS from the payments were never brought to the notice of the assessee nor any cross-examination of the parties from whom the enquiries were made were provided to the assessee. Ld. Counsel submits that the assessee categorically denied any receipt of amount from Asian TV Network P. Ltd. and there is no 2

I.T.A.Nos.1787 & 1523/Del/2023 justification for making any addition only based on the letter issued by Asian TV Network P. Ltd. The Ld. Counsel further submits that the assessee never claimed any credit for TDS said to have been deducted on the payments made to the assessee.

5.

Ld. DR supported the orders of the authorities below.

6.

On hearing both the sides and perusing the orders of the authorities below and the letter of Asian TV Network P. Ltd. it is observed that even though Asian TV Network P. Ltd. stated that it had undertaken transactions with Sumit Chawla they have not provided any ledger account maintained with them of the assessee.

It is further noticed that simply based on this letter of Asian TV Network P. Ltd. the addition seems to have been made this letter is dated 15.10.2017 which is the date on which the assessment was completed by the AO. Therefore, apparently this fact was not put to the assessee in the course of assessment proceedings.

Therefore, in the interest of justice, this matter has to go back to the file of the AO for further enquiries. Thus, this issue is restored to the file of the AO and the AO is directed to issue summons to the Director of Asian TV Network P. Ltd. to record a statement provided copy of statement to the assessee and also the cross-examination and complete the assessment in accordance with law. Ground no.2 3

I.T.A.Nos.1787 & 1523/Del/2023 & 3 of grounds of appeal of the assessee in is thus restored to the file of the AO with the above directions.

7. Coming to appeal filed against levy of penalty u/s 271B since the decision in the appeal in has bearing on this appeal and since the appeal in quantum addition has been restored to the file of the AO the penalty order passed u/s 271B is set aside and restored to the file of the AO.

8.

In the result, both the appeals are allowed for statistical purpose.

Order pronounced in the open court on 04/12/2023

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