Case Law Details
Deepak Bajaj Vs ITO (ITAT Kolkata)
ITAT Kolkata held that as reasons to believe, as recorded by AO, for reopening of the assessment under section 148 of the Income Tax Act is not supplier to the assessee, it will be construed that no valid notice is served and hence the proceedings are liable to be set aside.
Facts- The assessee is engaged in the business of television software in the name of “Beyond Reels’. Case of the assessee was reopened by issuing a notice u/s 148 of the Act dated 04.10.2012. Assessee filed his return in response to the said notice, reporting total loss of Rs. 6,92,232/-. Reopening proceedings were initiated on the assessee since he failed to furnish return of income. Assessee challenged the proceedings initiated u/s 147. In the course of assessment proceedings, AO noted that assessee has made certain payments for artist remuneration on which required TDS has not been done and, therefore, he disallowed an amount of Rs. 13,41,360/- u/s 40(a)(ia) of the Act. Similar addition of Rs. 9,60,363/- was made for non-deduction of tax at source in respect of studio hire charges and of Rs. 7,30,832/- in respect of interest paid on unsecured loans on which no TDS was done. Another disallowance of Rs. 45,845/- was made by taking 5% of the expenses towards car hire charges, conveyance and depreciation, on account of personal use.
Aggrieved, assessee went in appeal before the ld. CIT(A) who dismissed the same by observing that assessee has failed to submit documentary evidence and explanation in support of the grounds raised in his appeal.
Aggrieved, assessee is in appeal before the Tribunal.
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