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2019 (3) TMI 1734 - AT - Income TaxDeduction u/s 10A - HELD THAT:- As decided in own case AY 2006-07 and 2007-08 the profits earned by Kandla division of the respondent-assessee is not abnormally high due to any arrangement between the respondent-assessee and its German Principal. The Tribunal correctly held that extraordinary profits cannot lead to the conclusion that there is an arrangement between the parties. This would penalize efficient functioning. Further, the authorities have also recorded a finding that the industrial sewing machine needles imported and traded by the Mumbai division are different from those manufactured & exported by the Kandla division. Consequently, this also negatives any arrangement between the parties to show extraordinary profits in respect of its Kandla division so as to claim deduction under section 10A of the Act. These are findings one of fact. The appellant-revenue have not been able to show that the findings are perverse or arbitrary. Addition on account of reconciliation of receipts with Form 26AS - HELD THAT:- Assessee has stated that whatever receipts are acquired, they have reflected in their books of account. If there is any discrepancy, it is upon the Department to reconcile the same and that burden is shifted to the Department. However, while saying so, the assessee accepts TDS components involved in the transactions. If Form 26AS reveals ₹ 100/- as received by the assessee while in the books account, the assessee has recorded ₹ 90/- and there is discrepancy of ₹ 10/-. However, for getting the benefit of TDS, the assessee accepts TDS with regard to ₹ 100/- and not ₹ 90/-. If the TDS benefit is availed by the assessee of ₹ 100/- then it is also onus on the assessee to prove and reconcile the said difference of ₹ 10/- as to how ₹ 90/- is recorded in their books of account. In the instant case, while the assessee is claiming benefit of entire TDS components involved in the transactions, however, records different amount in his books of account as appearing in Form 26AS. As examined earlier, since the assessee is taking benefit of entire TDS components, the burden of reconciliation also lies on the assessee. We remand this matter to the file of AO for adjudication and direct the assessee to provide reconciliation of statement between Form 26AS and their books of account. The burden is clearly on the assessee since on TDS component benefit, they are taking it entirety. If the assessee is not able to reconcile the difference, then the AO may add the amount in difference to the income of the assessee. With these observations, this ground is set aside to the file of the AO for adjudication.
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