Gautam Techno Sanitation Pvt. Ltd. Vs. DCIT, Circle-10(1), New Delhi

Parties Involved

Facts Summary

The assessee, Gautam Techno Sanitation Pvt. Ltd., engaged in Plumbing and Fire Fighting Contract works, filed its Income Tax Return on 01.11.2014 declaring income of Rs.1,06,45,280/-. The case was picked up for scrutiny due to a mismatch in the income credited in the Profit & Loss Account and income as per Form 26AS. The Assessing Officer noticed that the contract receipts as per Form 26AS were Rs.3,49,50,567/- higher than that credited in the Profit & Loss Account. The AO issued notices under section 133(6) of the Act to those persons to whom job work charges of Rs.5,14,63,284/- had been claimed to have been paid by the assessee. However, the notices sent to 8 parties whom payment of Rs.64,95,000/- was claimed to have been made, returned unserved. The assessee filed an appeal against the order of the Commissioner of Income Tax (Appeals), which was dismissed without deciding on merits.…

Legal Issues

• 1. Taxability of mismatched receipts of Rs.3,49,50,567/- as per Form 26AS and receipts as per the Income Tax Return.
• 2. Disallowance of job work expenses of Rs.64,95,000/-.
• 3. Chargeability of interest under Sections 234B and 234D of the Income Tax Act, 1961.
• 4. Initiation of penalty under Section 271(1)(c) of the Income Tax Act, 1961.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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