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2010 (4) TMI 50 - DELHI HIGH COURTAddition - Discrepancy in books of accounts and TDS – addition on the basis of TDS certificate - The Assessing Officer had made an addition of Rs 36,06,749/- on account of the discrepancy in the books of accounts and the TDS certificate in relation to the assessment year 2003-04. For the year 2004-05, an addition of Rs 23,54,619/- was similarly made. The Income-tax Appellate Tribunal, however, deleted the said additions accepting the explanation given by the assessee. – held that - It was apparent that the error had happened due to the fact that though the tax was deducted at the rate of 2.20%, yet when the certificates were made, the rate of tax deduction was shown as 2.05%. Since the computer took the rate of deduction as 2.05% and applied the same to the amount of Rs 5,39,443/-, being the tax actually deducted, the amount shown as paid to the assessee by Fabritex Exports Pvt. Ltd was correspondingly increased. The certificate also indicated that as per the ledger account maintained by Fabritex Exports Pvt. Ltd., the amount payable and paid to the assessee for the fabrication charges was Rs 2.45 crores and not Rs 2.63 crores for the assessment year 2003-04. – addition was not justified - Decided in favor of assessee
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