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2019 (11) TMI 544 - AT - Income TaxAddition being a difference in the total receipt of the assessee as per TDS certificate and return of income filed - assessee has been consistently following mercantile method of accounting - HELD THAT:- When the assessee has been consistently following the mercantile system of accounting which has been accepted by the Revenue, converse view cannot be taken by the Revenue as the Revenue is required to follow the rule of consistency as has been held by the Hon’ble Apex Court in the case of Radhasoami Satsang vs. CIT [1991 (11) TMI 2 - SUPREME COURT] . Moreover, the entire exercise is revenue neutral because the assessee has paid the tax in 2007-08 when the income was actually accrued to him. AO to verify the facts inter alia that the assessee has offered the amount of tax qua the commission received during the year under assessment, when the income was accrued and has paid income-tax thereon in AY 2007-08, qua the same amount of which TDS was deducted in 2006-07; that no loss has been accrued to the Revenue because the assessee had paid the dummy tax during the year under assessment and paid actual tax on receipt of actual payment; that each payee of the commission had deducted TDS on the amounts paid/discharged as service-tax by the assessee and as such assessee is entitled to the benefit of TDS deducted on that account to the tune of ₹ 1,64,564/-. If the aforesaid facts are verified to be correct then addition made by the AO is not sustainable and is required to be deleted. Consequently, Grounds No.B, C, D & E are determined in favour of the assessee in the above terms.
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