Assessment Order passed without enquiry into CFS Charges paid to Continental Warehousing Corporation: ITAT upholds Revision Order [Read Order]
![Assessment Order passed without enquiry into CFS Charges paid to Continental Warehousing Corporation: ITAT upholds Revision Order [Read Order]](https://www.taxscan.in/wp-content/uploads/2023/05/Assessment-Order-passed-without-enquiry-Assessment-Order-CFS-Charges-Continental-Warehousing-Corporation-ITAT-Revision-Order-taxscan.jpg "Assessment Order passed without enquiry into CFS Charges paid to Continental Warehousing Corporation: ITAT upholds Revision Order [Read Order]")
The Chennai bench of Income Tax Appellate Tribunal (ITAT) has recently held that revision of the assessment order passed without enquiry into CFS charges paid to continental warehousing corporation is valid and good in law under Section 263 of the Income Tax Act. Assessee SDS Cargo Solutions Pvt. Ltd. is in the business of clearing and forwarding agency service. The assessee filed his...
The Chennai bench of Income Tax Appellate Tribunal (ITAT) has recently held that revision of the assessment order passed without enquiry into CFS charges paid to continental warehousing corporation is valid and good in law under Section 263 of the Income Tax Act.
Assessee SDS Cargo Solutions Pvt. Ltd. is in the business of clearing and forwarding agency service. The assessee filed his return for the assessment year 2014-15 admitting total income of Rs. 77,930/-.
After completing the assessment under Section 143(3) of the Income Tax,Act made addition towards disallowance under Section 40(a)(ia) of the Income Tax Act for Rs. 1,43,376/- towards CFS charges for non-deduction of TDS under Section 194C of the Income Tax Act.
Subsequently show cause notice under Section 263 of the Act issued to assessee.
The show cause notice issued by the PCIT mentioned that the assessment order passed by the AO is erroneous in so far as it is prejudicial to the interest of the revenue.
The AO failed to carry out required enquiries carried out on the issue of CFS charges paid to Continental Warehousing Corporation.
Therefore the PCIT rejected the contention of the assessee and set aside the assessment order. Aggrieved assessee filed an appeal before the tribunal.
Before the bench, while considering the appeal, no one appeared for assessee. R Mohan Reddy appeared for revenue.
The tribunal, after analyzing the facts and circumstances observed that AO has not carried out any enquiries on the issue of CFS charges paid to Continental Warehousing Corporation in light of relevant provisions of the Income Tax Act.
Therefore, Mahavir Singh (Vice President) and Manjunatha. G, (Accountant Member) found that assessee neither appeared nor filed any details to justify its case .
Hence, relying upon the above observation, the two-member tribunal confirmed the revision order passed by the PCIT.
To Read the full text of the Order CLICK HERE
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