TMI Blog2015 (4) TMI 291X X X X Extracts X X X X X X X X Extracts X X X X ..... profit rate of 8% is taken as income earned by the assessee on the said receipts - CIT(A) upheld the addition of ₹ 1,58,610/- in place of ₹ 19,82,630/- done by AO - Held that:- Carefully perusing the vouchers submitted by the assessee in the paper book. We find that except purchase of these items the assessee did not corelate them with the work performed so that it may be ascertained that these expenditure were actually incurred in relation to the receipts which have not been charged to the P&L account. However, in the interest of justice, we consider it just and proper to remand the matter to this extent, to the file of AO for re-adjudication of the same, after giving the assessee an opportunity of hearing and placing all the material on record to justify this expenditure to be incurred to the uncharged receipts to the P&L Account. We direct accordingly. Thus, we set aside the order passed by Ld. CIT(A) on this issue and direct the AO to re-adjudicate the same as mentioned above. - Decided in favour of revenue for statistical purposes. - ITA NO. 1607/MUM/2012(A.Y. 2008-09), ITA NO. 2067/MUM/2012(A.Y. 2008-09) - - - Dated:- 16-2-2015 - Shri I.P. Bansal And Shri Cha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reproduce the profit and loss account of the assessee, copy of which is filed at page 46 of the paper book. Profit Loss Account for year ended 31st March 2008. Particular Amount Particular Amount To Bank charges 4,333.17 Service Charges 7,985,370.00 To conveyance charges 85,750.00 Director s Remuneration 300,000.00 To Printing Stationary 66,429.00 To Salary Wages 1,050,000.00 To Sundry Expenses 99,754.50 To Telephone Charges 89,680.00 To Transportation charges 6,005,000.00 To Net Profit C/D 287,423.33 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (a)(ia) of the Act and in view of aforementioned submission, as no part of the sum was payable as at the end of the relevant previous year, the decision of sustaining disallowance by Ld. CIT(A) is incorrect. 4. On the other hand, it is the case of Ld. DR that in view of suspension of Special Bench decision, the same should not be followed. 5. We have heard both the parties and their contentions have carefully been considered. After careful consideration, respectfully following the decision of Coordinate Bench in the case of M/s. Vivil Exports P. Ltd. vs. ITO (supra), we delete the disallowance. For the sake of completeness relevant observation of the Tribunal from the said decision are reproduced below: 4. Though number of grounds were urged before us in the grounds of appeal annexed to Form No. 36, at the time of hearing the learned counsel for the assessee submitted that the assessee having made the payment, section 40(a)(ia) cannot be attracted because it speaks of the amount payable and it does not cover the amount already paid. In this regard he relied upon the following decisions of the ITAT Chennai Benches wherein the Bench had taken into consideration the decisio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeal, during the course of hearing Ld. DR has submitted a chart showing following figures: Details of the Contract receipts and corresponding Expenditure: As per Assessee As per Ld. CIT(A) Gross Receipts M/s. Ace Pipeline Contracts Pvt. Ltd. 35,00,000/- M/s. Seven Hills Health Care Ltd. ₹ 64,82,497/- Others ₹ 23,734/- Rs.1,00,06,231/- Less: Reimbursement of expenses (Rs.20,20,861/-) Income estimated @ 8% of ₹ 1,58,610/- (Revenue s Appeal) Net-Receipts credited to P L A/c.[A] ₹ 79,85,370/- Less: Expenditure incurred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be recast. Ld. CIT(A) has further observed that as details of factual expenditure incurred is not available, relying upon the judgment relied upon by the assessee, it would be appropriate if the profit rate of 8% is taken as income earned by the assessee on the said receipts. Accordingly, he has upheld the addition of ₹ 1,58,610/- in place of ₹ 19,82,630/-. The Revenue is aggrieved by the relief granted by Ld. CIT(A). 8. After narrating the facts it was submitted by Ld. DR that assessee did not submit details regarding the expenditure. The expenditure were claimed by the assessee in the P L Account. It was submitted by Ld. DR that in absence of details, Ld. CIT(A) has committed an error in granting relief to the assessee. Ld. DR submitted that entire amount of ₹ 19,82,630/- was assessable as income. The relief granted by Ld. CIT(A) should be reversed and the addition made by AO should be restored. 9. On the other hand, it was submitted by Ld. AR that assessee had actually incurred these expenditure. He submitted that copies of the vouchers of such expenditure have also been filed at pages 11 to 21 of the paper book. Thus, it was submitted that the receip ..... X X X X Extracts X X X X X X X X Extracts X X X X
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