2015 (7) TMI 727

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....d together and are being disposed of by a single consolidated order for the sake of convenience. ITA No.1668/Hyd/2014 2. First we shall take up the appeal of the Revenue for assessment year 2009-10. The relevant facts of the case giving rise to this appeal are as follows: The assessee is a company, which is engaged in the business of providing tele-communication services to the subscribers. As per the modus operandi followed by the assessee, the distributors purchase pre-paid SIM cards at a particular price, i.e. Distributor Price(DP) and sell the same to the Retailers at the Retailer Price(RP) keeping some margin for themselves. In turn, the retailers sell the SIM cards to the consumers at the Maximum Selling Charge (MSC). The difference....

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....etails and documents furnished by the assessee, the Assessing Officer found the same to be incomplete in several aspects as pointed out by him, as under-  "a) That in some cases only computation details were submitted and it is not known whether the commission was offered to tax or not. b) In some cases gross receipts details of deductees were not submitted. c) In some cases only acknowledgement of return was filed without enclosing Balance Sheet, Profit & Loss Account, computation of income and Audit Report. Hence, it is not possible to know whether the commission received by the deductee was offered to tax or not. d) In some cases, filed copy of acknowledgement of return alongwith required details." For the reasons given abo....

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.... proceedings before the Assessing Officer while giving effect to the CIT(A)'s Order, most of the required details were submitted. However, since there were too many distributors, reconciliation of gross receipts offered by the deductees and payments made by the assessee, was with reference to three distributors on sample basis. With reference to others, it was practically difficult as the distributors were spread across different geographical locations. d) That the PAN numbers of the deductees were submitted and it is the duty of the Assessing Officer to verify from the respective Assessing Officers of deductees whether deductees have offered the amounts paid by the assessee to tax or not, as held by Hon'ble ITAT, Mumbai, in the c....

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.... on the following grounds- "1. The learned CIT(A) erred in directing the AO to verify the payments made by the assessee and the receipts admitted by the deductees and give relief to the assessee u/s. 201(1) & 201(1A), even though the assessee failed to produce any evidences to this effect in the proceeding taken in consequence of similar directions in the earlier order of CIT(A) dated 08/04/2011 against original order. 2. The learned CIT(A) ought to have confirmed the order of the AO as the assessee was not entitled to any relief u/s. 201(1) & 201(1A) in the absence of any evidences as were required to be furnish to fulfil the conditions stipulated in the Proviso, except for the certificates from the Chartered Accountants. 3. The direc....