The assessee, an individual, filed an appeal against the order passed by the National Faceless Appeal Centre for Assessment Year 2020–21, wherein an addition of ₹25,58,770 was sustained by treating receipts as income from house property. The return of income was originally filed declaring total income of ₹5,81,630, and the case was selected under the e-verification scheme.

During verification, discrepancies were noticed between the gross receipts declared under section 44AD and the receipts reflected in the information available on record. Subsequently, the assessment was reopened under section 147, and reassessment proceedings were carried out after issuance of notice under section 148.

The assessee contended that the receipts were earned from providing shooting locations to television, film, and media production houses and constituted business income. It was explained that TDS was deducted by the payers under sections 194-I(a) and 194-I(b) inadvertently, even though the receipts were not in the nature of rental income. The assessee further submitted that he was registered under GST for providing professional and business services.

The Assessing Officer, however, observed that the assessee failed to furnish supporting documentary evidence such as contracts, bills, or vouchers to substantiate the claim that the receipts were business income. Consequently, the receipts amounting to ₹34,53,100 were treated as income from house property, and after allowing standard deduction, an addition of ₹24,17,170 was made. The Commissioner (Appeals) sustained the major portion of the addition, except for a small relief of ₹1,41,600.

Before the Tribunal, it was noted that although the assessee claimed to have filed various documents, it was unclear which documents were furnished before the lower authorities and which were filed for the first time before the Tribunal. On perusal of the paper book, the Tribunal observed that the documents appeared to be crucial for proper adjudication of the issue.

Considering the peculiar facts and in the interest of substantial justice, the Tribunal held that the matter required fresh examination. The Tribunal remanded the issue to the file of the Assessing Officer for de novo adjudication, directing that all relevant documents be considered and reasonable opportunity of hearing be granted to the assessee.

Accordingly, the appeal was allowed for statistical purposes.

Source Link- https://itat.gov.in/public/files/upload/1768375479-tWUYYS-1-TO.pdf

Disclaimer
This content is shared strictly for general information and knowledge purposes only. Readers should independently verify the information from reliable sources. It is not intended to provide legal, professional, or advisory guidance. The author and the organisation disclaim all liability arising from the use of this content. The material has been prepared with the assistance of AI tools.