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TMI Blog2016 (7) TMI 813X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessment order dated 24-12-2010 passed by the learned Assessing Officer (hereinafter called "the AO") u/s 143(3) of the Income Tax Act,1961 (Hereinafter called "the Act"). 2. The grounds of appeal raised by the assessee company before Income Tax Appellate Tribunal, Mumbai (hereinafter called "the Tribunal") read as under:- "1. The Ld Commissioner of Income Tax (Appeals)-9, Mumbai ["CIT(A)"], on the facts of the case and in law, erred in upholding the order of the Assessing Officer ("AO") dated 24.12.2010, making addition of Rs. 7,99,62,893 and reducing business loss to be carried forward to that extent on account of alleged discrepancy between the amounts on which TDS deducted as shown in 26AS form on the web site of Income Tax departme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom Books of Accounts of the assessee company . The summary of the aforestated mismatches in amounts as per the chart prepared by the AO in the assessment orders dated 24-12-2010 , page 2 are as under:- No. Nature of income Amount credited to the P&L a/c (Rs.) Amount credited as per the TDS Certificate Difference (Rs.) 1 Operational Receipts 39,47,22,941/- 46,49,82,227/- 7,02,45,286/- 2 Rent u/s 194 1 -- 96,89,704/- 96,89,704/- 3 Bank Interest 5,12,359/- 5,06,083/- -- 4 Others 1,744/- 29,647/- 27,903/- Total amount not credited in the Profit & Loss Account 7,99,62,893 Thus, it was observed by the AO that income of Rs. 7,99,62,893/- was not shown in the P&L account prepared from the books of accounts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d CIT(A) to the AO for remand report . The A.O. made enquiries u/s 133(6) of the Act with the parties and submitted vide remand report that the contentions were not acceptable. The assessee company submitted rejoinder to the remand report before the learned CIT(A) and reiterated its submissions that advances from customers have been reflected in the TDS certificates , service tax amount is also reflected in the TDS certificates as well there are errors in reporting by the customers in TDS returns which has led to the afore-said mismatch. The learned CIT(A) considered the submissions of the assessee company and the remand report and held that assessee company has failed to satisfactorily explain the difference between the income as shown in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd report is placed at paper book filed before the Tribunal at page 8-13. The ld. Counsel submitted that assessments were completed u/s 143(3) of the Act for the assessment year 2009-10 and 2010-11 and no addition has been made on this account. The assessment orders for assessment year 2009-10 and 2010-11 have been placed in the paper book filed before the Tribunal at page 74-86 , whereby it could be seen that no additions have been made on account of this difference between the income as reflected in TDS certificate and books of accounts . He submitted that the difference is mainly on account of service tax included in gross amount while deducting TDS while the same is merely collected by the assessee company to be paid to the Government a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r to the close of the previous year and the assessee company is following mercantile system of accounting. Similarly , services tax component on which the customers deducted tax at source under provisions of Chapter XVII-B of the Act is also added to the income of the assessee company while the service tax is collected merely on behalf of the Government which is deposited with the Government. It was also stated that some of the customers erred in reporting income while filing TDS returns with the Government authorities. The assessee company had also stated that detailed replies were submitted which are placed in paper book filed before the Tribunal at page 1-73 but the said replies were conveniently and simply brushed aside by the Revenue a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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