ITAT: Petitioner Not Liable to Define About Recipients Shown in the 26AS Form

The taxpayer does not liable to exemplify the recipients of the receipts shown in Form No. 26AS, The Delhi Bench of Income Tax Appellate Tribunal (ITAT) ruled.

The two-member bench of Anubhav Sharma (Judicial Member) and N.K. Billaiya (Accountant Member) at the time of deleting the additions sees that the Assessing Officer must be needed to ask the payer, for the payee’s information to whom payments would have been made via the payer on which the same can deduct tax at source.

The assessing officer learned that the taxpayer has obtained a sum through various airlines that used to function in India according to the data obtained via the non-filers monitoring system. The taxpayer does not furnish its income tax return for the F.Y. 2010-11 pertinent to Assessment Year 2011-12 as revealed by the assessing officer.

Under section 148 of the Income Tax Act, the assessing officer has issued the notice, for which the taxpayer has furnished the income return showing the income at NIL. The taxpayer would be in a limited partnership as per the state of Delaware, USA having its principal business in Georgia and is involved in the business of furnishing the details r of reservations, transaction processing, and affiliated services of airlines, travel agencies, and additional travel-related entities.

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The taxpayer has the ownership and functions of the global distribution system that has been located in foreign and furnishes subscribers with access and use of the same GDS.

The assessing officer saw that the taxpayer does not hold any receipt in India during the scrutinizing of income return but the revenue emerges in Form No. 26AS. The taxpayer seeks to elaborate on the reason why the same does not furnish its income return even though he has the receipt for the year specified in Form 26AS.

The taxpayer argued that he cannot be termed as qualified under the provisions of section 144C. Thus, being a qualified taxpayer, there is no necessity to frame the draft assessment order and by accomplishing so, the final assessment order dated 21.06.2019 is void from the start.

The tribunal, until the taxpayer gets eligible under section 144C(15)(b), the Assessing Officer could not pass a draft assessment order under section 144C of the Income Tax Act. Hence, all the proceedings consequent thereupon are also invalid. Therefore, the draft assessment order and the final assessment order are stopped.