Addition brushing aside Certificate issued by DDIT (Exemptions) is untenable in law

ITO Vs Ramesh Chawla (ITAT Delhi)

ITAT Delhi held that addition on the allegation of non-deduction of TDS unsustainable as AO failed to point out on which payments the assessee had not deducted TDS. Also, the claim of the assessee is supported by the certificate issued by the DDIT (Exemptions).

Facts- During the year under consideration the assessee claimed expenses on sundry creditors, freight expenses paid, loading and unloading expenses, car and telephone expenses, exemption of dividend income u/s. 10(35) of the I.T. Act, 1961 and deduction u/s. 80C of the I.T. Act, 1961. The A.O. called for certain information/documents by issuing notices, in response to which, the assessee offered his explanation.

However, the explanations offered by the assessee was not found acceptable to A.O. and, therefore, the A.O. disallowed the expenses claimed and not allowed deductions as claimed by the assessee and determined the income of the assessee at Rs.6,49,08,820/- as against the returned income of assessee at Rs.11,91,320/- under section 143(3) of the I.T. Act, 1961 vide order dated 28.03.2013.

Aggrieved by the order of the A.O, the assessee carried the matter in appeal before the Ld. CIT(A), who vide order dated 24.08.2017 partly allowed the appeal of the assessee.

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