TMI Blog2016 (7) TMI 813X X X X Extracts X X X X X X X X Extracts X X X X ..... income in the year of receipt as the assessee company is following mercantile system of accounting. As submitted before us that this has led to double taxation of the same income which is not permissible as per Scheme of the Act In our considered view, the matter of reconciliation of income between the TDS certificates and books of accounts of the assessee company needs verification by the authorities below and in the best interest of justice, the orders of the learned CIT(A) is set aside and the matter is restored back to the file of the A.O. for de- novo determination of the issue on merits after considering the clarifications, evidences and replies submitted by the assessee company in its defense to substantiate its contentions , and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 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 department and turnover/income shown by the Appellant in its audited annual accounts. The Ld CIT(A) ought to have carefully verified the details submitted instead of relying on the remand report of the AO and accepted the contention of the Appellant that the alleged discrepancy was on account of deduction of TDS on service tax and advances received from the clients which do not constitute turnover/income as well as mistakes made by the clients while uploading their TDS returns. 3. The only issue involved in this appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ₹ 7,99,62,893/- was not shown in the P L account prepared from the books of accounts of the assessee company while the said income was reflected ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de 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 form no 26AS/TDS certificate and the income as per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 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 and there is no income component in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 authorities below and t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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