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2019 (7) TMI 1079 - AT - Income TaxChargeablity of corresponding receipts in 26AS as income to tax as per Sec. 199 - TDS deducted on advance subsequently returned due to cancellation of the agreement - TDS claimed - difference in gross receipt, as per Form 26AS and the profit & loss account - HELD THAT:- AO did not verify the work order given by the company to ascertain the factual position. The assessee also did not keep the amount idle and spent the same, which shows that the assessee spent the amount for the work done. The AO did not examine M/s.Varsity Education Management Pvt. Ltd., and the works carried on to the company during the period of operation of the work order. Neither AO nor AR placed the cancellation agreement, date of cancellation, reasons for cancellation, if the work was not executed by the assessee who has executed the work to Varsity Education during the period of April 2012 to February 2013 i.e till the date of repayment of the advance etc. The assessee also did not place any correspondence with regard to cancellation of the work order. All these issues required to examine in detail to ascertain the factual position to arrive at the logical conclusion to ascertain whether the payment received from M/S Varsity Education was income or only the advance amount. During the appeal hearing also the Ld.A.R did not furnish the details such as the date of cancellation, reasons for cancellation, whether work order has been executed till the date of cancellation, the charges received, the compensation payable in case of unilateral cancellation etc. Thus issue is required thorough examination with the books of account of the assessee as well as the company. Therefore, we remit the matter back to the file of the AO with a direction to re-examine the issue in detail and decide the issue afresh on merits. Thus, the appeal filed by the Revenue is allowed for statistical purpose.
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