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2015 (8) TMI 1539 - AT - Income TaxDisallowance of job charges @ 10% - Non rejection of books of accounts - HELD THAT:- Addition has been made only on estimated basis by the AO and the ld. AO disallowed 20% of the job charges and the ld. CIT(A) restricted the same to 10% of the job charges is totally unwarranted as the entire books of account and vouchers were duly produced by the assessee during the course of assessment proceedings. Without rejection of the books of account, the action of the ld. AO as well as the CIT(A) in sustaining the addition on an estimated basis is arbitrary and unwarranted. Hence no hesitation to delete the said addition made in the sum of ₹ 9,000/- being 10% of the job charges. Hence, this ground of appeal is allowed. Disallowance of administrative expenses - HELD THAT:- Addition has been made only on estimated basis by the AO and the ld. AO disallowed 20% of the administrative expenses and the ld. CIT(A) upholding the action of AO is totally unwarranted as the entire books of account and vouchers were duly produced by the assessee during the course of assessment proceedings. Without rejection of the books of account, the action of the ld. AO as well as the ld. CIT(A) erred in sustaining the addition on an estimated basis is arbitrary and unwarranted. Addition being professional fees received by the assessee from I.C.I.C.I. Prudential Life Insurance Corporation Ltd.- HELD THAT:- As seen from the materials available on record that ICICI Prudential Life Insurance Corporation Ltd had cut a cheque on 21.03.2008 and tax was duly deducted on the same which is mentioned in the TDS certificate of the assessee and in consonance with the mercantile method of accounting followed by the assessee, the assessee ought to have disclosed this receipt as income in A.Y.2008-09. Hence the action of the assessee in not disclosing the same is not appreciated. However, it is also seen that the assessee has offered the same in A.Y.2009-10 on receipt basis - hereby direct the ld. AO to withdraw that income in A.Y.2009-10 together with TDS thereon to meet the ends of justice and in order to avoid double taxation of the same receipt. Accordingly, this ground of appeal is dismissed subjected to the directions contained herein above
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