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B.S. Consultancy Services Versus Income-tax Officer, Ward-51 (1) , Kolkata

2017 (9) TMI 1216 - ITAT KOLKATA

Addition on account of alleged suppression of service value received - Held that:- Admittedly, the assessee’s books of account are audited and the AO could not find any discrepancy in the same. Merely because the 26AS when compared with the service value as reflected in the P&L Account of the assessee cannot be the ground to make the addition. In such cases, we should take note that the assessee has no control over the Form 26AS which is generated by the department when the payer credits the tax .....

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payer and to find out the correct figure, without doing so, the addition made simply believing the Form 26AS will be an arbitrary exercise of power which cannot be sustained and, therefore, we direct deletion of the same. This ground of appeal of assessee is allowed. - Disallowance of 20% of the site expenses - Held that:- Before the AO, the assessee produced internal vouchers and bills wherever it could get the bills that was produced; and of course the office vouchers were produced before .....

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account. If there was any item-wise defect noticed by the AO, then he should have disallowed the said item-wise disallowance but not ad-hoc disallowance which cannot stand under scrutiny of law and, therefore, we are inclined to allow this ground of appeal of the assessee. - I.T.A No. 345/Kol/2017 - Dated:- 6-9-2017 - Shri A. T. Varkey, JM And Dr. A. L. Saini, AM For The Appellant : Shri Miraj D. Shah, Advocate For The Respondent : Shri Nicholas Murmu, JCIT ORDER Per Shri A.T.Varkey, JM This is .....

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income of ₹ 18,78,030/-. The case was subsequently selected for scrutiny through CASS. The reason for selection of scrutiny assessment was high ratio of refund. The AO noted that as per 26AS, the assessee received for service value at ₹ 1,80,00,135/- whereas the assessee in its P&L Account under the head service value has shown at ₹ 1,78,05,625/-. The AO noted that the assessee had shown receipt from some parties which are not reflected in Form 26AS and at the same time th .....

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We have heard rival submissions and gone through the facts and circumstances of the case. Before us the main plea of the assessee is that the receipt in the return is shown after netting of service tax and, therefore, the difference in receipt shown in Form 26AS vis-à-vis that shown in the return cannot justify the addition made by the AO. According to the Ld. AR, based on the AIR information addition cannot be made. According to the ld. AR, the assessee has no control over Form 26AS whi .....

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AO could not find any discrepancy in the same. Merely because the 26AS when compared with the service value as reflected in the P&L Account of the assessee cannot be the ground to make the addition. In such cases, we should take note that the assessee has no control over the Form 26AS which is generated by the department when the payer credits the tax deducted at source electronically by entering the PAN details of the assessee, where mistake during entering the PAN details or figures canno .....

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e of power which cannot be sustained and, therefore, we direct deletion of the same. This ground of appeal of assessee is allowed. 5. Ground no.2 of the appeal of assessee is against the action of the Ld. CIT(A) in confirming the disallowance of 20% of the site expenses claimed by the assessee and thus, adding a sum of ₹ 4,16,104/-. 6. Brief facts of this issue are that the assessee firm is engaged in the road survey consultancy (Planning and Designing of new road construction) and was eng .....

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cher of expenses were not readily available and the cost of lodging and conveyance was very high. The AO on the premise that the assessee failed to produce any bills/voucher was pleased to disallow 20% of the expenses claimed. Thus, made an addition of ₹ 4,16,104/- out of the total site expenses of ₹ 20,80,522/-. Aggrieved, the assessee filed an appeal before the Ld. CIT(A), who was pleased to confirm the same. 7. We have heard rival submissions and gone through facts and circumstanc .....

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