AO fails to Provide Import - Export Data from DGFT to Taxpayer for Reconciliation: ITAT restores appeal to JAO [Read Order]

The Income Tax Appellate Tribunal (ITAT), Mumbai Bench, restored an appeal to the Jurisdictional Assessing Officer (JAO) because the Assessing Officer (AO) failed to provide Import-Export data from the Director General of Foreign Trade (DGFT) to the assessee for reconciliation.

The main issue in the present case was the addition made on account of un-reconciliation with the figures of import and export provided by the DGFT. The facts are that the assessee was asked to explain the reasons for difference in the reported amount of imports from the DGFT and the purchases of the assessee as per the return of income filed.

The assessee filed a reconciliation statement and submitted that due to the unavailability of details provided by the DGFT, the variation cannot be exactly verified. The AO made additions to the imports and exports in the return of income filed by the assessee.

The Commissioner of Income Tax (Appeals) [CIT(A)] upheld the additions made on account of the difference made on imports and exports. The assessee-appellant then approached the ITAT.

The counsel for the appellant reiterated that despite multiple requests, the DGFT did not provide details of the quantum of import and export. The opposing counsel submitted that the AO has complete details for the entire year and that the issue may be restored to AO’s file for de novo adjudication.

The tribunal made note of the fact that the assessee was able to reconcile with the information as provided by the DGFT and thus the addition was restricted. The bench of Vikram Singh Yadav (Accountant Member) and Sandeep Singh Karhail (Judicial Member) held that the issue is to be restored to the file of the JAO with a direction to provide complete details from the DGFT. The appeal was allowed for statistical purposes.

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