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2018 (11) TMI 542 - ITAT MUMBAIAddition towards unexplained unreconciled contract receipts - difference between turnover considered by the assessee in its books of account and turnover appeared in Form 26AS - Held that:- In the case of civil construction business it is quite possible that the assessee submit bills in one financial year and the principals will certify and make payment in another financial year and deduct TDS on such payments when the payments have been actually made. The assessee's account turnover in their books of account as and when bill is submitted by following mercantile system of accounting. Therefore, there will always be difference between turnover considered by the assessee in its books of account and turnover appeared in Form 26AS. But, in such situation it is for the assessee to explain such difference by filing reconciliation statement to the satisfaction of the AO with evidence. In this case, although assessee claims to have accounted related turnover in the previous financial year, on perusal of the orders of authorities below, the facts are not emanating from the orders - issue needs to be re-examined by the AO in the light of claim of the assessee that the said turnover has been accounted in the previous financial year and shown as receivable in books of account. If, the assessee proves his claim with necessary evidence, then the AO is directed to delete addition towards unreconciled contract receipts. Addition towards capital gain from sale of properties - eligibility for exemption u/s 54 - Held that:- Facts remain unchanged. The revenue fails to bring on record any contrary evidence to counter the findings of fact recorded by the Ld.CIT(A). The Ld.CIT(A) has recorded categorical finding that capital gain computed by the assessee from sale of two properties is a long term capital gain and the assessee is eligible for exemption u/s 54 of the Act. Hence, we are in agreement with the findings of the Ld.CIT(A) and reject ground raised by the revenue. Addition made towards unsecured loan u/s 68 - CIT(A) deleted addition made by the AO by holding that the AO has not conducted necessary enquiry before making additions - Held that:- We find that payment of interest and deduction of TDS from such interest is not sacrosanct. What is relevant is whether assessee has filed necessary evidence to prove identity, genuineness of transactions and creditworthiness of the parties. On perusal of orders of lower authorities, there is divergent facts emerge from the orders of AO and the CIT(A) on the issue of genuineness of transactions and creditworthiness of the creditors. AO stated that the assessee did not file any evidence, whereas the CIT(A) stated that the assessee has filed confirmation from the party - the issue needs to be re-examined by the AO in the light of the divergent facts emerging from the orders of lower authorities - Appeal filed by the revenue partly allowed for statistical purpose.
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