Sandeep Surendran Nair Vs DCIT (ITAT Raipur)
Dive into an income tax appeal against Commissioner’s order. Explore discrepancies, disputed additions, and ITAT Raipur’s direction for reexamination.
The article delves into an income tax appeal challenging the order by the Commissioner of Income-Tax (Appeals)-II, Raipur, dated 30.01.2020. The appeal revolves around discrepancies identified by the Assessing Officer (A.O) under Sec. 143(3) of the Income-tax Act, 1961, for the assessment year 2014-15.
The appellant, a mechanical contractor in the cement industry, filed the return of income for 2014-15, declaring Rs. 69,30,640/-. Subsequently, the case underwent scrutiny assessment under CASS, leading to an order by the A.O on 28.12.2016. The A.O made additions of Rs. 28,62,702/- for mismatched receipts and Rs. 1,54,827/- disallowance u/s. 40(a)(ia).
Grounds of Appeal
The appeal challenges the following:
i. Mismatch between 26AS and contract receipts.
ii. Disallowance u/s. 40(a)(ia).
iii. Additions on old outstanding creditors.
iv. Additions on unpaid “Profession Tax” liability u/s 43B.
Disputed Additions
1. Mismatch of Receipts
The A.O’s addition of Rs. 28,62,702/- raised concerns about discrepancies between books and 26AS, impacting three parties. The appellant, during the appeal, presented evidence, including a confirmatory letter and ledger accounts, explaining each mismatch. The Tribunal found merit in the appellant’s contentions and directed the A.O to reexamine the claim.
