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Shri Girish M. Kothari Versus Jt. Commissioner of Income Tax Range–23 (2) , Mumbai

2016 (1) TMI 859 - ITAT MUMBAI

Addition on interest income on the basis of AIR data - Held that:- There is no dispute to the fact that the assessee is following mercantile system of accounting. Moreover, as per the AIR information available in Assessing Officer’s record, assessee in the relevant F.Y. has received interest of ₹ 6,60,822 from Everest Niwara. This fact is also evident from form no.26AS, a copy of which is submitted before us by the learned Counsel for the assessee. Therefore, once the interest amount has b .....

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an amount of ₹ 68,064, has been deducted at source by the payer while crediting the interest amount of ₹ 6,60,822. We, therefore, direct the Assessing Officer to verify this fact and give credit of the TDS to the assessee accordingly.

Disallowance of professional fee and salary expense - non–deduction of tax as reason as no proof of same has been submitted - Held that:- The assessee has submitted documents by way of additional evidence to indicate that expenditure incurred .....

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J. It is found that this argument advanced by the learned counsel before us was not taken before the Assessing Officer or the first appellate authority. Therefore, considering the submissions made by the learned counsel as aforesaid on applicability of section 194J as well as the additional evidence produced, we are of the view that the matter relating to allowance of assessee’s claim on professional fee and salary requires examination afresh. - ITA no.1524/Mum./2013 - Dated:- 6-11-2015 - SHRI S .....

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in making addition of ₹ 6,60,822, as interest income on the basis of AIR data. 2. The Assessing Officer and the learned CIT(A) erred in disallowing professional fee of ₹ 1,00,000 citing non-deduction of tax as reason as no proof of same has been submitted. 3. The Assessing Officer and the learned CIT(A) erred in disallowing salary expense of ₹ 2,75,000 as there is no proof of payment of salary and there is no proof of professional tax deducted from said salary. 2. As far as gr .....

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whereas interest received of ₹ 6,68,022, from M/s. Everest Niwara, on which the payer has also deducted tax has not been offered as income. Alleging that in spite of opportunity granted the assessee could not reconcile the discrepancy / difference, the Assessing Officer added the amount of ₹ 6,60,822, as income from other sources. 3. Before the first appellate authority, while challenging the addition made by the Assessing Officer, it was submitted by the assessee that it has not re .....

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the learned Counsel for the assessee submitted before us that the assessee was not aware of any such interest payment as he actually did not receive interest. Therefore, it was not shown as income. However, the learned Counsel for the assessee admitted that the assessee is following mercantile system of accounting. Alternatively, it was submitted by the assessee that in case the amount of ₹ 6,60,822, is treated as assessee s income, then credit should be given to the tax deducted at source .....

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ailable in Assessing Officer s record, assessee in the relevant F.Y. has received interest of ₹ 6,60,822 from Everest Niwara. This fact is also evident from form no.26AS, a copy of which is submitted before us by the learned Counsel for the assessee. Therefore, once the interest amount has been credited to the assessee and tax has been deducted by the payer, the assessee cannot take the plea of not offering the income on the ground that he has not actually received the same. We, therefore, .....

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edit of the TDS to the assessee accordingly. 7. In grounds no.2 and 3, the assessee has challenged the part disallowance of expenses on account of professional fees and salary. 8. Briefly stated the facts are, during the assessment proceedings, the Assessing Officer noticed that assessee has two separate business streams and has separate sets of annual account for the two business. He found that the assessee is having proprietorship concern in the name and style of Roshan Communication, and the .....

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earned income from a single transaction there is no necessity of incurring such huge expenditure. He also observed that the expenditure claimed was not supported by any documentary evidence. He, therefore, out of the total expenditure of ₹ 10,02,240, allowed an amount of ₹ 21,633, while disallowing balance amount of ₹ 9,80,607. Being aggrieved of such disallowance, assessee challenged the same before the first appellate authority. 10. The learned Commissioner (Appeals), after .....

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ved with the disallowance by the first appellate authority, the assessee is in appeal before us. 11. The learned Authorised Representative submitted before us as far as payment of professional fee is concerned, the assessee being an individual, is not required to deduct tax at source in view of second proviso to section 194J which prescribes that unless assessee s turnover from business or profession during the immediately preceding financial year exceeds the prescribed limit no tax is required .....

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of absence of evidence. He submitted that salary was paid to regular employees only, however, details could not be filed before the first appellate authority as they were never called for. However, furnishing the details of salary payment through a statement showing the name of employees and salary paid as well as bill from Chartered Accountant, confirmation letter and ledger account from Chartered Accountant, he requested for admitting them as additional evidence and if necessary restore the m .....

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