2022 (4) TMI 1068

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....through the record carefully. A perusal of the assessment order would reveal that the assessee has filed its return of income on 31.10.2015 declaring total income of Rs. 8,24,100/-. Ex-parte assessment order was passed on the basis of best judgment of the ld. Assessing Officer under section 144 read with section 143(3) of the Income Tax Act. Ld. Assessing Officer has determined the taxable income of the assessee at Rs. 61,50,860/-. He made three additions to the income of the assessee. The computation made at the end of the assessment order reads as under:- Total income as per return            Rs. 8,24,100/-       Addition: (i) Contract receipt/fees mismatch a discuss....

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....dded in the total income of the assessee. Ld. Counsel for the assessee submitted that since it was an ex-parte assessment order, therefore, efforts to reconcile the above could not be achieved. He prayed that this issue be remitted back to the file of the Assessing Officer for a fresh inquiry and to determine whether any actual difference is available or not. On the other hand, ld. CIT(D.R.) relied upon the order of revenue authorities. 6. On due consideration of the above fact, we find force in the contention of the ld. Counsel for the assessee. We remit this issue to the file of the ld. Assessing Officer for re-adjudication. Ld. Assessing Officer would determine whether there is actual difference in the total receipts which has element o....

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....fficer with the aid of section 40(a)(ia) of the Income Tax Act on the ground that the assessee failed to detect the TDS on the rent paid by it. Ld. Counsel for the assessee submitted that rent was paid to Railways i.e. almost to the Government Undertakings and this recipient must have recognized those receipts as their income and if the recipient has recognized the receipts as their income, then no disallowance is to be made on the basis of that TDS was not deducted. He made a reference to the decision of the Hon'ble Supreme Court in the case of CIT -vs.- Vatika Township Pvt. Limited (367 ITR 466). The ld. CIT(DR), on the other hand, submitted that it is very difficult for the Assessing Officer to collect the details from the recipients....