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2016 (5) TMI 1229 - ITAT MUMBAIAddition of difference in form No. 26AS showing the gross hire charges and as per the books of accounts of the assessee - Held that:- TDS were deducted by the recipient of service i.e. M/s Punj Lloyd Ltd amounted to ₹ 6,10,41,854/- whereas undisputedly, the assessee accounted only ₹ 5,56,09,575/- thereby resulting into short accounting of the said income to the tune of ₹ 54,32,279/-. The said difference was explained by the assessee to be on account of the reasons that the bills for hire charges were raised in the next year 2010-11 relevant to the AY 20011-12 whereas M/s Punj Lloyd Ltd accounted the expenditure in the current year i.e F.Y. 2009-10 relevant to AY 2010-11 and also deducted TDS thereon. We find merit in the arguments of the ld AR and also note that the whole exercise by the AO is neutral tax unit as the assessee had duly accounted for the difference of ₹ 54,32,279/- in the next financial year and also booked the corresponding expenditure in that year and the return of income was filed accordingly and was also accepted by the AO. We also find merits in the arguments of the ld. AR that the credit of service tax on the hire charges would not be available to the assessee had he booked the said hire charges under the current financial year. Looking to the totality of facts of the case , we are of he opinion that since the assessee has booked the full amount of hire charges as per Form No.26AS into two years and offered the same for taxation though the claim of TDS on the entire hire charges was made in the assessment year 2010-11. In any case, if the hire charges as mentioned in form No.26AS are to be considered in the current year then the corresponding income as shown in the next year with the relevant expenditure are to be deleted from the next year which seems to be meaningless and un-productive at this stage. Even worth noting is fact that the income has been accepted by the department in the subsequent year. We, therefore, are of the considered opinion that since the full amount of hire charges stood offered to tax by the assessee in two years , addition of ₹ 54,32,279/- can not be sustained as it will result in double taxation of the same income. Accordingly, we set aside the order of ld.CIT(A) and direct the AO to delete the addition - Decided in favour of assessee.
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