Case Law Details
BLR Logistiks (India) Ltd. Vs DCIT (ITAT Mumbai)
The Income Tax Appellate Tribunal (ITAT) Mumbai recently addressed the appeal of BLR Logistiks (India) Ltd. concerning an order from the Additional/Joint Commissioner of Income Tax (JCIT) dated June 21, 2024, regarding the assessment year 2015-16. The core issue arose from the Assessing Officer’s (AO) addition of ₹4,47,874, calculated as 18% of ₹24,88,188, which was not reflected in the appellant’s receipts according to Annual Information Return (AIR) data. The company, which operates in transportation and logistics, reported a total income of ₹2,43,68,420. During the assessment process, the AO noted discrepancies between the income reported in the company’s books, totaling ₹91.53 crore, and the ₹25.87 crore reported in the AIR data. The AO proceeded to make an ad-hoc addition without adequately verifying the details provided by the appellant. Following this, BLR Logistiks appealed the decision to the Commissioner of Income Tax (Appeals), which upheld the AO’s addition. Consequently, the matter escalated to the ITAT, where the tribunal determined that verification of the disputed income was necessary. The ITAT remanded the case to the AO to conduct a thorough investigation, including issuing notices under Section 133(6) of the Income Tax Act to the relevant parties. The ITAT emphasized that the assessee must be given a fair opportunity to present its case. Ultimately, the appeal was partly allowed for statistical purposes, and the matter will be adjudicated in accordance with legal provisions.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
Present appeal filed by the assessee arises out of order dated 21.06.2024 passed by the Ld. Addl./JCIT(A)-1, Delhi for Assessment Year 2015-16 on following grounds of appeal:
“1. The learned Commissioner of Addl./JCIT(A) erred in confirming the addition by the Assessing Officer amounting to Rs.4,47,874/- being 18% of Rs.24,88,188/-, the sum of money not found in the receipt of your appellant as provided in AIR information. As the appellant prays that the impugned addition of Rs.4,47,874/-.”
Brief facts of the case are as under:
2. The assessee is engaged in the business of transportation and logistics services. For the year under consideration, assessee filed its return of income declaring total income of Rs.2,43,68,420/-. During the assessment proceedings, the Ld. AO called for details in respect of the parties from whom assessee received money as reflected in the AIR data to the extent of Rs.2.87 Cr.
2.1 In response to the notice the assessee prepared detailed statement providing information of such The Ld. AO pointed out that as per books, the gross receipts from the parties was Rs.91.53 Cr. against the amount appearing in the AIR data of Rs.25.87 Cr. It is submitted that the Ld. AO picked up only those parties from whom higher amount was received as per the AIR data, though admitting to the fact that the money is received as per the books was more than the money that was reflected in the AIR data.
3. The Ld. AO without calling for any details made addition on an ad-hoc basis at 18%.
Aggrieved by the order of the Ld. AO, the assessee preferred appeal before the Ld. CIT(A).
Aggrieved by the order of the Ld. CIT(A), the assessee is in appeal before the Tribunal.
3. It was submitted that, the assessee furnished relevant details, however, no verification was carried out by the authorities below. In the interest of justice, we find it necessary to remand this issue back to the Ld. AO to carry out verification from the parties from whom the alleged money are held to be not offered in the nature of gross receipts by the Ld. AO. The Ld. AO is directed to issue notice u/s 133(6) of the Act to the parties and the assessee is directed to furnish all relevant information/details in support of its claim. The Ld. AO shall adjudicate the issue in accordance with law. Needless to say proper opportunity must be given in accordance with law to the assessee.
Accordingly, the grounds raised by the assessee stands partly allowed for statistical purpose.
In the result, appeal filed by the assessee is partly allowed.
Order pronounced in the open court on 18/10/2024.
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