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2018 (9) TMI 1240 - AT - Income TaxAddition on account of difference in TDS receipts - Difference in gross receipts as per the form 26AS with gross receipts recognized in accordance with cash system of accounting - Held that:- Approach of Revenue was to wrongly invert the law by erroneously charging such amounts to tax which are not assessable as Assessee’s income of this year under cash system of accounting regularly followed by the Assessee, merely because Assessee has claimed credit for tax deducted at source on corresponding amounts; instead of following the correct approach whereunder Revenue should have allowed credit for tax deducted as source in respect of such amounts only which are assessable as income of this year in accordance with cash system of accounting regularly followed by assessee. We disapprove the approaches of both Assessee and Revenue. It is not permitted for anyone to either distort or to invert law. We set aside the orders of Ld. CIT(A) and the Assessing Officer and we restore this matter to the file of the Assessing Officer to re-compute the income of the assessee in accordance with cash system of accounting, which is the system of accounting regularly employed by the Assessee; and to give credit for prepaid taxes on account of tax deducted at source, as per law, having regard to section 199 of I.T. Act r.w.r. 37BA of Income Tax Rules. Disallowance of expenses out of Car Expenses, Telephone Expenses and Staff Welfare Expenses - Held that:- Assessee failed to bring any materials for our consideration to prove that the disallowances confirmed by the Ld. CIT(A) were excessive, unreasonable, erroneous or against law. The Ld. Counsel for Assessee failed to make a case for any interference with the order of Ld. CIT(A) on these issues. Therefore, grounds related to disallowances are hereby dismissed. - Appeal of the assessee is partly allowed.
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