TMI Blog2014 (7) TMI 301X X X X Extracts X X X X X X X X Extracts X X X X ..... e addition as the particular income, which has been added at the hands of the assessee has already been offered to tax by the company in the return of income filed for the in the AY – Decided against Revenue. - ITA. No. 1032/Hyd/2013 - - - Dated:- 18-6-2014 - Shri B. Ramakotaiah, A. M. And Saktijit Dey, J.M.,JJ. For the Petitioner : Sri Solgy Jose T. Kottaram For the Respondent : Sri P. Murali Mohan Rao ORDER Per Saktijit Dey, J. M. This appeal by the Revenue is directed against the order dated 15-10-2013 of CIT(A)-V, Hyderabad pertaining to assessment year 2008-09. 2. The issue in the aforesaid appeal of the Department is in respect of the order of the CIT(A) in deleting the addition of ₹ 88,25,000/- made by the AO. 3. Briefly the facts are, the assessee is an individual and is the principal officer and Chairman-cum-Managing Director of the company M/s Country Club (India) Ltd., an Indian Company. For the AY under consideration, the assessee had filed his return of income on 08/12/2009 declaring total income of ₹ 1,96,98,000/-. During the scrutiny assessment proceeding, the AO noted that the assessee has received ₹ 88,25,304/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... account of the assessee company. Invoices from the AP Beverages Corporation Ltd. are also in the name of the company and not in the name of the assessee. It was submitted that the company i.e. M/s Country Club (India) Ltd. has not only shown the income from the sale of liquor and the returns filed, but, has also claimed the credit for the tax deducted/collected at source by AP Beverages Corporation. It was, therefore, submitted that the same income having already been offered to tax by the company, it cannot again be assessed at the hands of the assessee. In support of such contention, the assessee also submitted documentary evidence in the form of paper book. 5. The CIT(A) on going through the submissions of the assessee and evidences submitted before him called for a remand report from the AO. After receiving the remand report from the AO and examining all aspects of issue, the CIT(A) deleted the addition by observing as under: 4.3 I have considered the assessment order, remand report, written submissions and arguments of the assessee s authorized representative and the appeal is decided as under: 4.31 The appellant is the Managing Director of the company M/s Country C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ince joint venture had not filed return of income and claimed credit for TDS certificates, said credit was to be allowed to assessee in capacity of a co-joint venture. 4.3.5 The relevant extract of the Judgment of the Honourable A.P High court in the case Commissioner of Income Tax Vs. Bhooratnam Co [2013] 29 taxmann.com 275 (Andhra Pradesh) are reproduced as under: 17. In our view, the ClT (Appeals) and the Tribunal have rightly held that the assessee is entitled to the credit of the TDS mentioned in the TDS certificates issued by the contractor, whether the said certificate is issued in the name of the Joint Venture or in the name of a Director of the assessee company. They have considered the terms of the agreement dated 12-03-2003 among the parties to the joint venture and held that credit for TDS certificates cannot be denied to the assessee while assessing the contract receipts mentioned in the said certificates as income of the assessee. The income shown in the TDS certificates has either to be taxed in the hands of the joint venture or in the hands of the individual co-joint venturer. As the joint venture has not filed return of income and claimed credit for TDS ce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from AP Beverages Corporation Limited in the hands of the appellant. 6. We have heard the parties and perused the materials on record as well as the orders of the revenue authorities on this issue. On perusal of the assessment order, it is obvious that the AO at the stage of assessment has completely mixed up facts as he has treated the amount of ₹ 88,25,300/- as rental income received from AP Beverages Corporation Lt., which is not at all correct. Furthermore, it is the consistent stand of the assessee right from the stage of assessment that though the license was issued in the name of individual because of restriction in the policy decision of the Prohibition and Excise Department, but, the liquor business was carried on by the company M/s Country Club (India) Pvt. Ltd. The entire purchase from AP Beverages Corporation Ltd. and sales effected of liquor have been reflected in the books of account of the company and profit generated there from has been offered to tax in the return of income filed by the company. The TDS/TCS on purchase of liquor made from AP Beverages Corporation Ltd. has also been claimed by the company and not by the assessee. All the aforesaid contenti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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