Credulity Solutions Pvt. Ltd Vs ITO (ITAT Delhi)
Assessee filed return declaring income of ₹76.81 lakhs. Case was selected for verification of large contract payments to non-filers. AO issued multiple notices but, alleging non-compliance, completed assessment on 21.12.2022 making additions of ₹2.89 crores, ₹3.75 lakhs, ₹1.14 crores & ₹4.79 lakhs. CIT(A)/NFAC dismissed appeal on 09.01.2024 stating that “no details were uploaded”.
Before Tribunal, Assessee argued that this observation was factually wrong since all supporting documents, including proof of payments to Futuretimes Technology India Pvt. Ltd. and Soni Chatrath & Co., had been duly uploaded via acknowledgment no.125276841250423. However, NFAC ignored the submissions and upheld AO’s order. Revenue also conceded that matter may be remanded for fresh consideration.
Tribunal found merit in Assessee’s grievance of non-consideration of uploaded evidence. It held that principles of natural justice were violated as relevant material was on record but not examined. In the interest of justice, Tribunal set aside CIT(A)’s order & restored the matter back to CIT(A) for fresh adjudication, with direction to grant proper opportunity of hearing. Accordingly, Assessee’s appeal was allowed for statistical purposes
FULL TEXT OF THE ORDER OF ITAT DELHI
The appeal filed by the assessee is against order dated 09.01.2024 of Learned Commissioner of Income Tax (Appeals)/National Faceless Assessment Centre (NFAC), Delhi (hereinafter referred as “the Ld. CIT(A)”) under Section 250 of the Income Tax Act, 1961 (hereinafter referred as “the Act”) arising out of Assessment Order dated 21.12.2022 of the Assessment Unit, Income Tax Department, New Delhi (hereinafter referred as “the Ld. AO”) under Sections 143(3) r.w.s. 144B of the Act for assessment year 2021-22.
