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2016 (3) TMI 48 - ITAT VISAKHAPATNAMAddition on account of suppressed/unaccounted turnover - Held that:- The assessee has accounted all the receipts and reconciled the TDS certificate to the books of accounts and explained the reasons for the difference in turnover. The assessee further contended that the difference was accounted in the subsequent years and to this effect, filed necessary reconciliation statement. On verification of the paper book filed by the assessee, we find that the assessee has submitted accounts copies of each parties with a reconciliation statement which is available in paper book. On further verification of the reconciliation statement filed by the assessee, we find that the difference quantified by the A.O. is based on form 26AS. The assessee contended that she is following mercantile system of accounting and recognized the income on accrual basis. The A.O. has not pointed out any mistakes in the method of accounting followed by the assessee. He never rejected the books of accounts maintained by the assessee. The A.O. simply quantified the difference between books of accounts and form 26AS. The assessee has explained the difference by furnishing necessary reconciliation. Therefore, we are of the opinion that the A.O. was not correct in making additions, towards difference in turnover without pointing out any mistakes in books of accounts, that too based on form 26AS. Therefore, we direct the A.O. to delete the additions towards difference in turnover. - Decided in favour of assessee Disallowance u/s 40(a)(ia) - advertisement charges and finance charges for non deduction of tax at source - Held that:- The revenue did not dispute the fact with regard to paid and payable. The CIT(A) has recorded finding of the fact that the expenditure incurred under these heads have been already paid during the financial year. Therefore, considering the facts and circumstances of the case we are of the opinion that no disallowance can be made on the payments which has been paid during the financial year. Therefore, we direct the A.O. to delete the additions made u/s 40(a)(ia) of the Act - Decided in favour of assessee
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