The Mumbai bench of the Income Tax Appellate Tribunal ( ITAT ) has remanded an income tax matter for readjudication on ground that the Assessing Officer ( AO ) made an ad hoc addition of unexplained receipts without calling for the necessary records.
In this case, the assessee, BLR Logistics ( India ) Ltd., has been engaged in the trade of transportation and logistics services. For the Assessment Year 2015-16, the assessee filed its Income Tax Returns ( ITR ) declaring a total income of Rs. 2,43 Cr. The Assessing Officer ( AO ) requested information on the parties from whom the assessee received funds totaling Rs. 2.87 Cr., as shown in the AIR data, during the assessment proceedings.
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A piece of detailed information regarding the details was prepared by the assessee. It was pointed out by the AO that as per the books, the gross receipts from the parties were Rs.91.53 Cr. against the amount appearing in the AIR data of Rs.25.87 Cr. The AO picked up only those parties from whom a higher amount was received as per the AIR data, though admitting to the fact that the money received as per the books was more than the money that was reflected in the AIR data.
AO without calling for any details made addition on an ad-hoc basis at 18%. The assessee who was aggrieved by the above order of AO approached the Commissioner of Income Tax Appeals ( CITA ). But it did not yield any satisfactory results. And thus the assessee approached ITAT for relief.
It was submitted by the assessee that although relevant information was submitted,no verification was carried out by the authorities below.
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The ITAT bench comprising of Renu Jauhri ( Accountant Member ) and Beena Pillai ( Judicial Membe ) remanded the case back to the AO to carry out the verification. The bench directed the AO to issue a notice under Section 133(6) of the Income Tax Act,1961 to the parties, and the assessee was directed to furnish all relevant information/details in support of its claim.
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