Non Submission of PAN and confirmation of  parties regarding advances received for Dish Installation: ITAT upholds Addition [Read Order]

The Two member bench of Delhi Income Tax Appellate Tribunal (ITAT) upheld the addition made on account of non submission of PAN and confirmation of parties regarding the advances received for Dish Installation.

The Assessee , Dish Infra Services Pvt.Ltd received deposits/advances of Rs.705.05 Cr on account of Dish installation from small trade partners, EPRS recharge collection , security deposits from distributors, security deposits from corporate customers and advances from Dish Care center for activation scheme and from “Dish TV India Ltd.”

During the assessment proceedings the Assessing Officer made an addition o f Rs.1 .20 Cr. out of the advance o f Rs.705.05 Cr . owing to nonsubmission o f PAN and confirmation o f the parties.

Aggrieved by the order the assessee filed an appeal before the CIT(A),who deleted the addition to the tune o f Rs.93 .98 lacs out of Rs.1 .20 Cr. and confirmed the addition of Rs.26 .88 lacs on the grounds that the deposits to the tune of Rs.26,88 ,147/- are not having PAN and rest o f the amount is deleted.

CIT(A) has deleted the amounts received from the parties namely, advances from distributors and advances from EPRS-Distributors . The remaining amounts being less than Rs.1 .8 lacs for which the ledgers have been duly verified by the  CIT(A).

Further the CIT(A) has accepted advances from 10 parties who could prove the validity of the advances and confirmed the amounts received from 19 parties who could not prove the advances given. Aggrieved by the order, the revenue filed an appeal before the tribunal.

After reviewing the facts the ITAT bench of Astha Chandra, (Judicial Member) and Dr. B. R. R. Kumar (Accountant Member)  upheld the addition made on account of non submission of PAN and confirmation of parties regarding the advances received for Dish Installation.

Vivek Sarin, counsel appeared for assessee and Sapna Bhatia counsel appeared for revenue.

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