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2015 (1) TMI 479 - GUJARAT HIGH COURTAdoption of income on the basis of T.D.S. Certificate - Held that:- AO shall not make an adjustment of the nature, which would require an examination of the evidence or a hearing to be given to the assessee. The assessee had carried out certain work on behalf of M/s. Ravi Organizers as sub-contractor and had received ₹ 16,30,000/- from the M/s. Ravi Organizers, who had deducted 2 per cent T.D.S. from the aforesaid amount. The assessee had rightly shown the income to the extent of ₹ 13,70,000/-, whereas, T.D.S. was deducted on ₹ 16,30,000/-. Since, the actual work carried out by the assessee during the relevant year was to the extent of ₹ 13,70,000/- and as the bill was also raised for the same amount, the assessee was justified in not showing his income to be ₹ 16,30,000/-. Even otherwise, it is not the case of the Revenue that the amount, which was carried forward by the assessee, does not reflect in the Balance Sheet. Therefore Tribunal was not right in holding that the AO was right under Section 143(1)(a) in adopting the income of ₹ 16,30,000/- on the basis of T.D.S. Certificate in place of ₹ 13,70,000/- which the assessee had shown as work in progress and billed Ravi Organizers. Decided in favour of assessee.
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