TMI Blog2010 (7) TMI 798X X X X Extracts X X X X X X X X Extracts X X X X ..... out of the assessment completed under section 143(3) of the Income-tax Act, 1961. 2. The assessee is engaged in the business of servicing/works contracts for air-conditioners. The assessee is also dealing in purchase and sale of air-conditioners. 3. The assessee had returned a total income of Rs. 28,07,600 for the assessment year under appeal. The Assessing Officer has made a three-way addition amounting to Rs. 87,61,177. Thus the total income was determined at Rs. 2,15,68,515. 4. Out of the three-way additions, the first one related to the disallowance of business promotion expenses amounting to Rs. 1,24,595. The second addition was of Rs. 85,73,697 made as alleged case of turnover suppression. The third addition of Rs. 62,613 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onstructions and Development Ltd. (SCDL) regarding the value of supplies and services by the assessee to SCDL which were to the extent of Rs. 2,53,82,200 against the assessee s claim that the value of those supplies and services were only to the extent of Rs. 1,68,08,503. ( iii )The Commissioner of Income-tax (Appeals) has erred in reaching the conclusion that M/s. Subramanya Constructions and Development Ltd. (SCDL) has inflated expenditure instead of considering that the assessee himself has suppressed the sales. ( iv )The Commissioner of Income-tax (Appeals) has failed to appreciate that the assessee had already claimed the expenditure in the books of account in respect of the sales, which are suppressed and applying a net profit rat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ractical difficulties in keeping the necessary details to reconcile the difference in the accounts. 9. Shri Padam Chand Khincha, the learned chartered accountant explained that the difference in the account balances existed for the reason that even though services were rendered by the assessee, the bills were not settled and, therefore, the assessee has not recognised the income attributable to the work whereas the other party SCDL has fully accounted for the amount even before the final determination of the acceptance of the work as well as acceptance of the bills. Therefore, he explained that this is a question of recognition of income for services rendered which is governed by Accounting Standard-9 (AS-9) where the Institute of Chart ..... X X X X Extracts X X X X X X X X Extracts X X X X
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