The Income Tax Appellate Tribunal (ITAT), Kolkata has ruled that the Assessing Officer is not able to validate the information of the Tax Deduction at Source (TDS) via the related party and deletes addition.
While at the time of the scrutiny assessment of the petitioner, M/s. Jai Balaji Industries Limited, the Assessing Officer ruled that a sum of Rs 11,45,372, alleging, a mismatch in the income obtained via the appellant relying on the details made from 26AS TDS information. The petitioner furnished a petition to the first appellant authority which confirmed the addition and thus the petition was chosen for the ITAT.
The counsel for the petitioner made that the petitioner executes an advance payment of Rs 9,39,708 to Tata Meta links DI Pipes Limited buying scrap materials. The taxpayer claim would have been cancelled via Revenue Authorities on the basis of the precise amount is not discernible via the statement of 26AS, the authority will show the amount (for the prepared bill). Often it is not needed that the advance that the taxpayer furnished must match wholly with the buying incurred via it. The advance can be managed for the additional buying.
The Assessing Officer maintains on creating references to Bank accounts, partial payments, and others, the tribunal found. It is when the assessing officer cross-checks via a related party, Tata Metaliks DI Pipes Limited, that much more excessive litigation along with the wastage of resources can be prevented.
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The Coram consists of Mr. Rajpal Yadav, Vice-President (KZ), and Mr. Girish Agrawal, Accountant Member during permitting the petition ruled that excluding hiring that cross-validating of information from the related party, the AO carried on to draw the conception of the defects in the information of the taxpayer through the method of the deductive reasoning method. Therefore, the denial is not sustainable.
On the ground of the petitioner and respondent respectively, Mr. Punit Agarwal and Smt. Ranu Biswas appeared.
