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2016 (10) TMI 4 - AT - Income TaxAddition in respect of alleged sales to DLF Services Limited - amount as per TDS not disclosed - addition in this case has been made by the AO on the basis of AIR information which shows that the amount of ₹ 33,80,000/- was paid/credited in favour of the assessee on a/c of sale of advertisement pace by the assessee and accordingly TDS of ₹ 76,591/- was also shown to be deducted - Held that:- The said amount of TDS was also claimed by the assessee which was reversed after the AO asked the assessee to reconcile the AIR information. The ld. AR of the assessee argued before the AO as well as before the ld.CIT(A) that the assessee entered into a contract with the DLF Services Limited for supply of space for advertisement which never materialized and consequently not shown in the income of the assessee. We are convinced with the arguments of the ld AR that sale which has not taken place as the contract for sale of space was cancelled and thus never materialized can not be said to have accrued to the assessee and therefore cannot be considered as income of the year under consideration regardless of the facts that the TDS was deducted by M/s DLF Services Limited. In the present case before us, we find that the AO has not bothered to further verity the facts qua the entries in AIR information whereas the information as regards M/s DLF Services Limited were available with the AO and he proceeded to rely on the AIR information solely without further verification. The addition on the basis of entries in AIR as the these entries are made by the parties other than the assessee and can not be sustained In this case, the assessee claimed to have not executed contract and claimed that the income never materialized and therefore cannot be form part of income in the books of account which was not verified by the AO at all. Similarly the ld CIT(A), the ld.CIT(A) confirmed the action of the AO on the ground that the TDS of ₹ 76,591/- was deducted on the sales of ₹ 33,80,000/- which proved that the assessee had made the sale to M/S DLF Services Ltd is also wrong.In view of these facts as discussed above, we are of the considered opinion that the order by the ld. CIT(A) cannot be sustained and we ,therefore, set aside the order of ld. CIT(A) and direct the AO to delete the addition.- Decided in favour of assessee Addition on provisions for sundry balances written off - Held that:- The details of miscellaneous expenses reveals that 9th item of the above details represented Sundry debits balances written off which adequately proved beyond doubt that the assessee has not claimed the provisions of sundry balances written off but actual wrote off in the books and the said amount, therefore, in our view, admissible under the provisions of Act. Accordingly we set aside the order of ld CIT(A) and direct the AO to allow the claim of the assessee for bad debts of ₹ 6,22,705/-.
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