The Income Tax Appellate Tribunal (ITAT), Hyderabad Bench directed to conduct enquiry on deduction of TDS and thereby granting Relief to Facebook India Online Services Private Limited.
The assessee company, Facebook India Online Services Private Limited is engaged in the business of Service Sector, IT Enabled Services and BPO Providers, back-office support services to its associated enterprise (`ITeS’).
The Assessing Officer has noted that there is a mismatch of the income shown by the assessee and the entries shown in Form 26AS. In this regard, the Assessing Officer has added Rs.10,10,372to the income of the assessee, treating the same as undisclosed income.
The Counsel for the assessee submitted that assessee could account only for the income which has been received by it, and in this case, the assessee has not received any income corresponding to the amount mentioned in form 26AS. It was submitted before the learned AO to make sufficient enquiries from the persons whose details along with PAN numbers are mentionedin 26AS and find out whether the said credits pertain to assessee company or not.
A Bench consisting of Rama Kanta Panda, Accountant Member and Laliet Kumar, Judicial Member held that “The disagreement between the Assessing Officer and the assessee with respect to the income received by the assessee or the amount shown in 26AS can only be resolved by making necessary enquiries from the persons who had deducted the TDS amount. The details of the persons i.e., Names, PAN numbers and addresses, are all available in form 26AS.”
“Therefore, we deem it appropriate to restore the issue to the file of the Assessing Officer with the direction to verify once again the claim of the assessee by using powers conferred under the Act and find out whether the said income pertains to assessee company or not from the said persons who had allegedly deducted the tax as reflected in 26AS.”
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