ALL ABOUT OUTDOOR MEDIA.COM PVT. LTD.,GURGAON vs. ACIT CIRCLE - 2(1), NEW DELHI

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ITA 446/DEL/2020Status: FixedITAT Delhi31 July 2023AY 2016-172 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the assessee failed to provide any supporting evidence for its claim. It was also noted that the assessee claimed TDS credit for income not recognized, which lacked substance.

What were the facts?

The assessee appealed against an order disallowing a difference of Rs. 18,81,584/- between gross receipts in Form 26AS and the P&L account. The assessee claimed the difference was due to client reporting based on internal provisions.

What were the issues?

Whether the disallowance of the difference between Form 26AS and P&L account is justified without supporting evidence. Whether claiming TDS credit for unrecognized income is permissible.

Which sections of the Income-tax Act were involved?

Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘A’ : NEW DELHI

Before: SH. M. BALAGANESH & SH.ANUBHAV SHARMA

Hearing: 24.07.2023

The appeal has been preferred by the Assessee against the order dated 26.11.2019 of CIT(A)-22, New Delhi (hereinafter referred as Ld. First Appellate Authority or in short Ld. ‘FAA’) in appeal no. 185/19-20/CIT(A)-22, New Delhi arising out of an appeal before it against the order dated 19.12.2018 passed u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred as ‘the Act’) by the ACIT, Circle-2(1), Delhi (hereinafter referred as the Ld. AO).

2.

Heard and perused the record.

3.

When the case was called for hearing none has appeared for the assessee. The notice issued earlier were received back unserved with reports of ‘assessee has left address’ and the department has filed a report of service of the notices. On hearing the Ld. DR, he has supported the findings of Ld. Tax authorities below.

4.

It can be appreciated from the matter on record that the ground arises out of the fact of disallowance of Rs. 18,81,584/- as per 26AS for the difference between gross receipts as per 26AS and the sales in the P & L Account. The assessee had accepted the difference and has taken a plea that the client had reported higher amount on the basis of their internal provisions. The matter on record show that no material whatsoever in the form of evidence was filed by the assessee in support of the submission which was completely factual and required reconciliation and confirmation from the client. There is substance in the findings of Ld. AO that when assessee company is not recognizing corresponding income then it should not have claimed the credits for TDS in its return of income.

5.

In the light of aforesaid discussion, the findings of Ld. Tax Authorities below require no interference. The grounds raised have no substance. The appeal of assessee is dismissed.

Order pronounced in the open court on 31st July, 2023.

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