Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

ABG Kandla Container Terminal Limited Versus ACIT – 5, Aayakar Bhavan, Mumbai

2016 (7) TMI 813 - ITAT MUMBAI

Mismatch of amounts credited in TDS certificates and amounts credited in the P&L account - Held that:- The subsequent years assessments have been framed u/s 143(3) of the Act for the assessment year 2009-10 and 2010-11, whereby no such additions have been made by the revenue in the assessment framed u/s 143(3) of the Act. As submitted before us that inclusion of advances from customers as income of the impugned assessment year will lead to double addition of the same income as the assessee compa .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

any 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 decide the matter afresh in accordance with law. Needless to say that the AO shall provide proper and adequate oppor .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

eal, filed by the assessee company, being ITA No. 6268/Mum/2012, is directed against the order dated 19-07-2012 passed by learned Commissioner of Income Tax (Appeals)- 9, Mumbai (hereinafter called the CIT(A) ), for the assessment year 2008-09, the appellate proceedings before the learned CIT(A) arising from the assessment 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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

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 mistake .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

on build, operate and transfer BOT basis and derives income by providing berthing facilities to vessels. For the year under consideration the assessee company has declared receipt from terminal handling charges at ₹ 39.47 crores and has shown loss before tax at ₹ 9.20 crores. 5. The assessee company has claimed TDS to the tune of ₹ 1,37,15,168/-. On perusal of the TDS certificates , it was observed by the AO that there is a mismatch between the income found credited in the TDS .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

94 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 in the TDS certificates and the said income of ₹ 7,99,62,893/- was added to the income of the assessee company by 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

ndered before the end of the previous year as also service tax component on the gross payments received have been included in the income of the assessee company despite the fact that the assessee company is following mercantile system of accounting and revenue on these advance payments received from customers could be recognized only on rendering of services and not at the stage of receiving of advances from customers.It was also submitted that service tax is merely collected from customers on b .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

sessee 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 sa .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rieved by the appellate orders dated 19-07-2012 passed by the learned CIT(A) the assessee company is in second appeal before the Tribunal. 9. The learned Counsel for the assessee company submitted that there is a difference between the income shown in the TDS certificate and the income credited in the P&L account to the tune of ₹ 7,99,62,893/- . The assessee company is engaged in the business of development, operation, management and maintenance of berth No. 11 & 12 in Kandla Port .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

produced and the same were forwarded to the AO for his remand report. The remand 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 addi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

services were not rendered prior to the end of previous year and also there are errors in the amount of income which has been reported by the customers in TDS returns filed with the Revenue. He submitted that the A.O. has not given proper and sufficient opportunity to clarify and reconcile the difference of ₹ 7,99,62,893/- and if an opportunity is granted the assessee company will reconcile the difference . It was also submitted that the detail submissions were made before the authorities .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the TDS certificate and the income reported in the P&L account prepared from books of accounts to the tune of ₹ 7,99,62,893/-. The assessee company had stated that there were advances received from customers on which TDS was deducted by the customers but the assessee company has not rendered any services against such advances prior to the close of the previous year and the assessee company is following mercantile system of accounting. Similarly , services tax component on which the cu .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

at page 1-73 but the said replies were conveniently and simply brushed aside by the Revenue authorities below and there is a complete non-application of mind by the authorities below which has caused great prejudice to the assessee company. The subsequent years assessments have been framed u/s 143(3) of the Act for the assessment year 2009-10 and 2010-11, whereby no such additions have been made by the revenue in the assessment framed u/s 143(3) of the Act. It is also submitted before us that in .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     bird's eye view     ↓  


|| 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