Enquest Petro Solutions Private Limited Vs Assessing Officer (ITAT Delhi)
Form 26AS Addition Deleted Because Same Consultancy Income Cannot Be Taxed Twice: ITAT; Property Transfer Expenses Allowed Under Capital Gains Because They Were Not Business Expenses: ITAT; ITAT Grants Partial Relief Because Consultancy Income Reconciliation Explained Form 26AS Mismatch; Professional Fees Claim Partly Disallowed Because Evidence of Business Benefit Was Insufficient: ITAT.
The Income Tax Appellate Tribunal (ITAT), Delhi, considered the assessee’s appeal against the order of the Commissioner of Income-tax (Appeals)/National Faceless Appeal Centre dated 28.07.2025 for Assessment Year 2018-19. The appeal involved issues relating to addition on account of mismatch between income declared in the return and Form 26AS, allowability of expenses connected with sale of property, and disallowance of professional fees claimed as business expenditure.
The assessee, a private limited company engaged in providing higher-end consultancy and other services to the petroleum and oil exploration sector, had filed its return declaring total income of Rs.7,44,85,320/-. During scrutiny assessment, the Assessing Officer (AO) noticed a variation between consultancy income disclosed in the return and income reflected in Form 26AS. The assessee submitted a reconciliation explaining that certain consultancy income relating to Bharat Petro Resources Ltd. had already been recognized in the earlier year in accordance with Accounting Standard-9, as the services had been rendered during that period, although invoices were raised later and corresponding tax deduction at source appeared in Form 26AS of the subsequent year. The assessee also explained a minor difference in income reported by another client.
