Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (3) TMI 1574 - AT - Income TaxClaim of TDS credit - assessee following cash accounting method - TDS certificates shows higher gross receipts then what is shown in the return of income and profit and loss account. - Held that:- Assessee has already offered the income on gross turnover of ₹ 14.76 crores following cash system of accounting. According to the method of accounting if the tax deduction at source has been made by the client on or before 31st March but payment is not received till that date, tax deducted at source is included in the income by the assessee. Therefore, according to the method of accounting followed by the assessee, no infirmity in the order of the ld CT (A) in deleting the addition. Hence, the addition made by the AO of ₹ 3.78 crores is under the accounting treatment incorrect understood by the AO. In view of this the ground No. 1 and 2 of the appeal of revenue are dismissed. Addition on account of rental receipts under the head ‘income from house property” - Held that:- Gross rent received from the tenant includes the service tax payable on the rent realized by the appellant. AO has erred in working out the Annual Value of the house property after excluding the service tax payable thereon for computing income from the house property. This finding also finds support from the fact the AO has accepted net annual value after excluding the service tax out of the gross rent receipt for computing the income from the house property in the subsequent AY. Accordingly, the service tax paid and refund of one month rent has to be deducted out of the gross Rent received from M/s with ICICI Prudential Life Insurance Co. Ltd., to arrive the Annual Value of the property. Consequentially, the addition made under the head income from the house property is deleted. - Decided against revenue
|