GST Helpdesk   Subscription   Demo   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2015 (4) TMI 622 - GUJARAT HIGH COURT

2015 (4) TMI 622 - GUJARAT HIGH COURT - TMI - Addition on Mobilization Advance - Difference / discrepancies between receipts as per TDS certificates and the receipts shown as income by the assessee in its return of income - ITAT deleted the addition - Appellate Tribunal and the CIT (A) admitting fresh evidence - Held that:- it has come on record that the assessee was following the system regularly showing the mobilization account and the amount of advance were always stated in the subsequent AY .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ed by the learned CIT (Appeals) in deleting the additions made on account of the “Mobilization Advance” account.

In so far as the contention on behalf of the revenue that the appellate Tribunal and the learned CIT (Appeals) have erred in admitting fresh evidence without following due procedure under the Income Tax Rules is concerned, it is required to be noted that as such, no elaborate submissions have been made on the aforesaid by learned advocate appearing on behalf of the revenue. .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

1. Feeling aggrieved and dissatisfied with the impugned judgment and order passed by the learned Income Tax Appellate Tribuna, A Bench, Ahmedabad (hereinafter referred to as the learned Tribunal ) dated 29.2.2008 in ITA No.2053/Ahd/2006 for AY 2003-2004, the revenue has preferred the present tax appeal with the proposed following substantial questions of law. [A] Whether the Appellate Tribunal is right in law and on facts in deleting the addition of ₹ 48,64,783/- made on account of discrep .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

velopment Company Limited. The assessee filed return of income for AY 2003-2004 declaring taxable income of ₹ 2,91,111/- on 12.11.2003. That the assessee while computing his taxable income had accounted for the receipts (on account of revenue receipt) at ₹ 2,26,16,653/-. At the same time, the assessee also engaged sub-contractor for executing the work procured by it and made total payments to those two sub contractors at ₹ 4,38,67,648/- and out of total payment of ₹ 4,38, .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

,21,41,704/-. In addition to the above, the assessee also claimed another expenditure of ₹ 1,83,838/- in the profit and loss account. 3. It appears that the Gujarat Urban Development Company Limited issued TDS certificate to the assessee for AY 2003-2004, as per which the total payments made to the assessee were shown at ₹ 4,89,16,270/- and the TDS at ₹ 10,27,241/-. It appears that the assessee had not accounted for receipts amounting to ₹ 2,62,99,670/- while computing it .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

,89,16,270/- and expenditure on account of payments made to sub contractors at ₹ 4,38,67,648/-. That the assessee was called upon to explain why the receipts should not be taken at ₹ 4,89,16,270/- against ₹ 2,26,16,653/- shown by the assessee. The assessee explained before the Assessing Officer that out of total receipts of ₹ 4,89,16,270/-, receipt to the extent of ₹ 2,62,99,617/- were on account of Mobilization Advances and similarly, out of total payment of ₹ .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

not accept the assessee's explanation and consider the total payment of ₹ 4,89,16,270/- as Revenue Receipts and after allowing credit for total payments made to sub contractors at ₹ 4,38,67,648/- and on account of expenses debited in the Profit and Loss Account at ₹ 1,83,838/- computed the net taxable income at ₹ 48,64,783/-. Being aggrieved by and dissatisfied with the aforesaid, the assessee preferred appeal before the learned CIT (Appeals), who partly allowed the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

udgment and order, the learned Tribunal has dismissed the appeal preferred by the revenue confirming the order passed by the learned CIT (Appeals) deleting the additions made by the Assessing Officer on account of Mobilization Advance in the year under consideration. 6. Feeling aggrieved by and dissatisfied with the impugned judgment and order passed by the learned Tribunal, the revenue has preferred the present tax appeal with the aforesaid proposed questions of law. 7. We have heard Mrs. Bhatt .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

eatment. Considering the aforesaid facts and circumstances, when the learned CIT (Appeals) as well as the learned Tribunal have deleted the additions made by the Assessing Officer on account of Mobilization Advance in the year under consideration, it cannot be said that the learned CIT (Appeals) as well as the learned Tribunal have committed any error. In para 8.4 and 9, the revenue observed and held as under: 8.4 Coming to the Assessing Officer's reliance on the fact that sub contractors ha .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

hands. 9. We, in view of above, facts and circumstances of the case and the fact, are of the view that the assessee has established the factum of having received advance of ₹ 2,62,99,617/- by way of documentary evidence as well as the facts that it was following the same system regularly (Revenue has not disputed the claim), also the fact that the amount of advances was adjusted in the subsequent Assessment Year against bills in that year and the Revenue having not raised any objection fo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version