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2012 (9) TMI 63 - AT - Income TaxAddition on mismatching of TDS receipts with P&L account - unaccounted income - CIT(A) deleted the addition - Held that:- The AO has erred in considering all the amounts received by the assessee company from airlines (towards commission) & from Clients (towards reimbursement of expenses) as income and erred in adding back a sum of Rs. 48,99,461/- as income on account of commission and sum of RS. 24,10,732/- on account of contract income. Assessing Officer has considered the entire payment as per TDS certificate as income and has failed to appreciate what is liable is income, real profit and not payment received by the assessee. Thus agreeing with the CIT(A)'s view that the payment received on account of freight cannot be considered to be the income of the assessee as it is a receipt against liability incurred, thus additions made by the AO cannot be sustained on this account. That assessee has been following this method of accounting consistently and the department has been accepting the same, thus as per sec. 145, the income must be computed in accordance with the method of accounting regularly employed by the assessee - in favour of assessee.
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