The Delhi Bench of Income Tax Appellate Tribunal (ITAT) ordered the assessee to submit the challan proving the payment of sales tax and the relevant order of the VAT assessment along with the demand notice before the Jurisdictional Assessing Officer (JAO) within 6 months from the date of this order.
The assessee in this present case is Jay Polychem India Ltd. In the assessment proceeding the Asssesing Officer (AO) addition made on the amount of Rs. 24,00,000/- out of Rs. 26,60,480/- being additional demand of sales tax paid by the assessee during the year under appeal.
Aggrieved by the order the assessee filed an appeal before the Commissioner of Income Tax (appeals)[CIT(A)], which sustained the addition owing to the reason of non-submission of challans, order of VAT assessment and the demand notice before the revenue authorities.
Further aggrieved the assessee filed an appeal before the Tribunal.
The Bench comprising of C. M. Garg, Judicial Member Dr. B. R. R. Kumar, Accountant Member granted liberty to the assessee to submit the challan proving the payment of sales tax and the relevant order of the VAT assessment along with the demand notice before the JAO within 6 months from the date of this order, failing which the revenue would at liberty to initiate the recovery proceedings as the provisions of the Income Tax Act.
The Tribunal followed the order of Supreme Court in the case Checkmate Services P. Ltd. vs. Commissioner Of Income Tax-I .
Hence the appeal of the assessee was partly allowed for statistical purpose.
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