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2018 (12) TMI 898 - AT - Income TaxAddition towards suppressed sales - estimation of profit - assessee has offered income on estimated basis - Held that:- The total turnover from each project was shown in the revised return and the same was accepted by the Assessing Officer in his remand report - the assessee estimated income @ 8% of the total turnover, including the turnover which was not routed through the books of account - once the A.O. estimates the income, separate addition on the suppressed turnover is not maintainable and at best the suppressed turnover has to be taken into consideration for the purpose of estimating the profit. No contrary decision was placed on record by the Revenue. Under these circumstances, we are of the view that the CIT(A) was justified in holding that the separate addition towards suppressed sales is not maintainable. Applicability of provisions of section 197A(IA) - TDS on interest - disallowance u/s 40(a)(ia) - non furnishing of details to indicate that the assessee has forwarded Form 15G to the CIT - Held that:- It is mandatory on the part of the assessee to furnish the details to the Commissioner, though not within the stipulated time but atleast before the completion of assessment of the assessee. In the instant case, no details were furnished to indicate that the assessee has forwarded Form 15G to the CIT. Under these circumstances, we are of the view that the assessee committed an error in making the payment without deducting the tax at source and consequently the provisions of section 40(a)(ia) are applicable. The case of the assessee is that in the case of estimate of income after rejecting the book results, there cannot be any independent disallowance u/s 40(a)(ia). This issue was discussed in K VENKATARAJU VERSUS ADDL COMMISSIONER OF INCOME TAX [2013 (11) TMI 409 - ITAT VISAKHAPATNAM] observed that a disallowance is a technical disallowance and more precisely deferment of allowance, which is linked with the compliance of TDS provisions and hence even if the business income is estimated disallowance can be made u/s 40(a)(ia) independently. A.O. has correctly applied the provisions of section 40(a)(ia). However, if the assessee is able to prove that the declaration in Form 15G was submitted before the CIT before completion of assessment for the year under consideration, the A.O. may reconsider the issue in accordance with law. - decided against assessee.
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