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2016 (8) TMI 412 - AT - Income TaxReceipt of labour charges - difference in amount offered for taxation - assessee filed reconciliation - Held that:- We find that during the assessment proceedings, the AO had observed that the assessee was in receipt of labour charges of ₹ 9. 35 crores for the year under consideration and had offered ₹ 9. 29 crores only for taxation, that the assessee filed reconciliation in that regard, that he directed the assessee to file further reconciliation of the receipts in the cases of NLL and HAJ(Rs. 4. 78 crores and ₹ 2. 47 crores, respectively), that the AO concluded that there was difference in the receipt to the extent of ₹ 33. 82 lakhs, that the assessee had argued before the FAA that the AO had wrongly considered the labour-charges-TDS certificates, that service tax, VAT were considered as income while calculating labour-charges receipts, that the assessee had filed detailed reconciliations before the FAA with regard to NLL and HAJ, that it had filed debited notes containing the details of service tax and TDS, that it had also explain as to how the retention money was affecting the bill amounts, that while deciding the appeal the FAA did not consider the debit notes and the Ledger accounts in proper perspective, that it had also explained as to why there was difference between the ledgers of both the parties and the ledgers maintained by it, that the FAA ignored the submissions made by it. In our opinion, the reconciliations submitted by the assessee along with the debit notes the Ledger accounts of NLL and HAJ and the final bills(page 109 of the PB. )have to be considered for arriving at final conclusion. Thus, there is a need of further verification of the matter under consideration. So, in the interest of justice, we are restoring back the issue to the file of the AO for fresh adjudication. He is directed to afford a reasonable opportunity of hearing to the assessee and to consider the material submitted by the it before us. - Decided in favour of the assessee in part.
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