TaxTMI 
TaxTMI 
TaxTMI 
2024 (12) TMI 1342
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....appreciating the fact that M/s. One Point One Solution Ltd. has been found by the GST authorities to be a bogus entity issuing accommodation bills to generate fake Input Tax Credit?" ii. "Whether on facts and circumstances of the case, and on law, the Ld.CIT(A) was justified in deleting the addition made by the Assessing Officer, on the ground that the AO did not make any investigation and merely completed the assessment on suspicion without appreciating the fact that conclusive evidence had been found by the GST authorities that M/s. One Point One Solution Ltd. is a bogus entity issuing accommodation bills?" iii. "Whether on facts and circumstances of the case, and on law, the Ld.CIT(A) was justified in deleting addition made by the Assessing Officer, on the ground that the assessee was not afforded enough opportunities to submit documents in its support, without appreciating that the assessee was provided with the reasons of reopening and hence was aware of the issue since the beginning of the assessment proceedings and yet it failed to submit the requisite documents when it was afforded opportunities of being heard during the assessment proceedings?" 3. Brief facts of the c....
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.... received from M/s. OPOS i.e. copies of ledger, invoices, GSTR2A downloaded from GST portal, copy of bank statement, copy of Master Service Agreement dated 18.09.2017 entered with M/s. OPOS, Statement of Income, Balances Sheet, Profit and Loss A/c. and Tax Audit Report. All the above documents were claimed to have been also submitted during the assessment proceedings before the AO, however, he has not accepted the same. The Ld. CIT(A) observed that the AO has made the addition as per information of Investigation Wing that M/s OPS is involved in availing fake input tax credits without any supply of service. This may be a good reason for making further investigation but the AO did not make any further investigation and merely completed the assessment on suspicion. Once the appellant has brought on record the details of supporting documents i.e. details of purchases made/services received, ledger account, payments made by account payee cheque, it was incumbent on the AO to have verified the payment details from the bank of the appellant and also from the bank of the suppliers to verify. No such exercise has been done. The AO also did not cross examine the supplier. Further, no adverse....
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....the year under consideration which was consequently deleted. 6. Before us, the ld.DR has contested the deletion of the impugned addition by the CIT(A) claiming that there was sufficient basis for making the disallowance. He relied on the findings of the AO as per the assessment order. 7. Per contra, the ld. Counsel has vehemently supported the appellate order. It is argued that the allegation stemmed from an Investigation carried out by the CGST, Belapur, in the case of M/s. OPOS. wherein it was alleged that the said company was engaged in providing non-genuine services to various persons/ entities. The AO in the assessment order referred to the GST investigation of the said party allegedly claiming some fake input tax credits with another party, however there is no mention about assessee claim vis a vis GST investigation. Thus, the whole reassessment is based on unverified information without application of mind. Merely some wrong input credit claim of third party would not under any circumstances lead to conclusion that the services availed of by the assessee would be termed as non-genuine. 7.1 It is further contented that without providing any evidence for the allegation levi....
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....he Act is a special provision dealing with the computation of profits and gains of business of insurance and it prevails over other provisions of the Act. The jurisdictional Mumbai ITAT in the case of Birla Sun life Insurance Company Ltd. Vs. DCIT [2010-TIOL-535- ITAT-MUMI. Sahara India Life Insurance Co. Ltd. v. Assistant Commissioner of Income- tax. [2023] 457 ITR 548 (Delhi) 7.4 It is concluded that in view of the factual and legal submission, Assessee submits that GST Investigation does not reveal any finding against or nexus with services availed' by assessee, hence allegation of department is arbitrary. GST investigation referred in Asst. order are not pertaining to the assessee or its services. Therefore addition rightly deleted by CIT(A). Dept appeal may be dismissed. 8. We have duly considered the rival submissions. It is worth mentioning here that the CIT(A) allowed the appeal inter alia with the remarks that though it was a good case for further investigation, the AO failed to do. He also held that the AO did not allow cross examination. Such an observation is self-contradictory in as much as the CIT(A) is duly empowered under the statute to either make an enquiry ....
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....order or vary it so as either to enhance or to reduce the penalty; c) in any other case, he may pass such orders in the appeal as he thinks fit. (2) The Commissioner (Appeals) shall not enhance an assessment or a penalty or reduce the amount of refund unless the appellant has had a reasonable opportunity of showing cause against such enhancement or reduction. Explanation.-In disposing of an appeal, the Commissioner (Appeals) may consider and decide any matter arising out of the proceedings in which the order appealed against was passed, notwithstanding that such matter was not raised before the Commissioner (Appeals) by the appellant. 8.4 A fine reading of the above powers in the light of various judicial pronouncements, we can exemplify the powers of the CIT(A). The Legislature has conferred very wide powers upon the Appellate Commissioner once an appeal is preferred to him by the assessee. An appeal is only a rehearing or a retrial. In the absence of any statutory inhibitions or restrictions, CIT(A) has precisely the same powers, exercisable or in the same manner and to the same extent, as the AO has, in the first instance. The powers of the CIT(A) are in the nature of reass....