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2016 (7) TMI 813 - ITAT MUMBAI

2016 (7) TMI 813 - ITAT MUMBAI - TMI - 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 o .....

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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 decide the matter afresh in accordance with law. Needless to say that the AO .....

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amit Kochar, Accountant Member This appeal, 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 (Herei .....

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lleged 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 consti .....

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Kandla Port Trust as container terminal 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 betwe .....

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,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 in the TDS certificates and the said income of ₹ 7,99,62,893/- was added to th .....

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mers against which services were not rendered 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 .....

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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 .....

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12 passed by the learned CIT(A). 8. Aggrieved 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 o .....

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e the learned CIT(A) new evidences were 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 .....

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eived from the customers against which 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 submis .....

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difference between the income shown in 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 , .....

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n 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 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. .....

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