TMI Blog2010 (2) TMI 930X X X X Extracts X X X X X X X X Extracts X X X X ..... ch no discrepancy has been noticed by the Assessing Officer, the addition was rightly deleted by the learned Commissioner of Income-tax (Appeals), appeal and the cross-objection are dismissed - IT APPEAL NO. 2617 (Delhi) of 2008 - - - Dated:- 18-2-2010 - Deepak R. Shah, George Mathan, JJ. Vivek Kumar for the Appellant. Dr. Rakesh Gupta for the Respondent. ORDER Deepak R. Shah, Accountant Member . This appeal by the Revenue and cross-objection by the assessee are directed against the order of the learned Commissioner of Income-tax (Appeals)-XI, New Delhi, dated May 13, 2008, in an appeal against the order under section 147 of the Income-tax Act, 1961 (the Act). 2. In the cross-objection the assessee challenges ini ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... RO). 5. In reply, the learned Departmental representative Shri Vivek Kumar submitted that the reasons were specific. It was found that though the credit for TDS is on higher amount, such amount is not credited to the profit and loss account. Therefore, it amounts to income escaping assessment. The original assessment was framed under section 143(1)(a). There was no occasion to form an opinion at that time. Hence, on the specific information in possession of the Assessing Officer, reassessment proceeding is valid. Reliance was placed on the decision of the hon'ble Supreme Court in the case of Asstt. CIT v. Rajesh Jhaveri Stock Brokers (P.) Ltd. [2007] 291 ITR 500/161 Taxman 316. In the said case it has been held that reopening has to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of which a rational person can form a rational belief regarding income escaping assessment and since such opinion is on the basis of subjective satisfaction of the Assessing Officer as held by the hon'ble Supreme Court, the reassessment proceedings were valid. 7. As regards merits of the addition, we find that the addition is made only because of the difference between the receipts as per the TDS certificate and the receipts as per the profit and loss account. However, before the Assessing Officer as well as the Commissioner of Income-tax (Appeals) it was submitted that the appellant was working as clearing and forwarding agent and was earning income by way of commission and service charges, etc. The sea/air freight on the shipment bo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at firstly the freight paid was not an expenditure of the appellant and was paid on behalf of customers. It was also not part of the profit and loss account of the appellant and was debited/credited in the separate account. Without prejudice to this the complete details of the receipt and payment of freight were submitted before the Assessing Officer in the form of chart where names and addresses of the clients were also given. All the details and relevant evidence were produced before the Assessing Officer and verified by him. Therefore, the disallowance made on arbitrary basis was not justified. 8. The learned Commissioner of Income-tax (Appeals) even asked for further information which were supplied by the assessee and on the basis o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The difference was due to the fact that the TDS was deducted by the payers on the amount actually paid whereas the amount credited to the profit and loss account was on the basis of bills raised. In respect of some payments no TDS was deducted while some payment was made in the next year. Apart from this there are receipts aggregating to Rs. 11,34,42,155 in respect of which no TDS was deducted. Taking into account that amount, gross revenue receipt for the year are Rs. 14,33,49,275 out of which operational expenses of Rs. 12,48,64,710 were deducted to arrive at the net receipt of Rs. 1,84,84,565 which was shown in the profit and loss account. Therefore the comparison made by the Assessing Officer about receipt in the TDS certificate and th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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