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2016 (9) TMI 1427 - AT - Income TaxAddition on account of suppressed service charges - undisclosed receipts - undisclosed contract receipts - Held that:- The assessee derives income from executing the contract job work and in doing so is bound to incur expenses. It is not the case of the revenue that all expenses including the expenses relatable to the undisclosed receipts from execution of contract job work has already been taken into consideration while arriving at the total income of the assessee declared in the return of income by the assessee. Thus the belief of taxing 31.75% which is the disclosed gross profit of the assessee on the undisclosed contract receipts is just and fair and the plea of the Assessee in this regard is directed to be accepted. TDS u/s 194C - Addition u/s 40 (a)(ia) - amounts to different parties for supply of technical works and labourer on a regular basis for conducting AMC job-work - Held that:- As decided in case of M/s. Abhoy Charan Bakshi [2016 (5) TMI 755 - ITAT KOLKATA] the Assessee has furnished all the details of assessment particulars of the recipients of payment from the Assessee. The AO therefore should not have any difficulty in making the required verification. We therefore set aside the order of the CIT(A) to the extent to which he had sustained the order of the AO on the disallowance u/s.40(a)(ia) and remand the issue to the AO to verify whether the recipients have included the receipts paid by the assessee in their respective returns of income and also paid taxes on the same. Similar directions as were made above should be given in the present case also. Addition on account of education expenses for the employee of the assessee - Held that:- It would be just and proper to set aside the order of CIT(A) on this issue and remand to the AO for fresh consideration of the issue with the liberty to the assessee to establish that the expenses in question were in fact incurred for the education of the children of the employees. If it is so established then the deduction claimed should be allowed.
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