TMI Blog2018 (5) TMI 578X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee to pay tax on the impugned amount accepted the offer of the assessee and made the addition of the impugned amount on agreed basis. It is well-settled law that no appeal lies on agreed additions. Mere making entries in a different way would not absolve the assessee from deducting TDS on material so purchases from civil contractor for the purpose of business. These facts, therefore, show that there is no mistaken facts in making offer to surrender amount in question before the AO. In these circumstances, the assessee cannot resile from his statement and admission made before the AO. The facts and circumstances clearly justify the orders of the authorities below in making the addition. Since the assessee agreed for addition before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also noted that the assessee did not revise the return within the time allowable u/s 139(5) of the Act. Penalty proceedings were also initiated. 3. The assessee challenged the addition before Ld.CIT(A). The submissions of the assessee are reproduced in the appellate order in which the assessee briefly explained the revised computation of income vide letter dated 23.07.2014 was filed before the AO disallowing the amount u/s 40(a)(ia) where no TDS was deducted which was misconceived. It was further claimed that the assessee did not claim the amount in question as expenses but debited the same in the current assets under the heading inventories , Schedule-14 under the sub-heading work in progress of ₹ 3,50,27,74,261/-. The assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... year. It is only because of the presentation of the accounts that the impugned amount is not shown as expense claimed in the P L A/c but debited to current assets under schedule 14 of the Balance sheet. As mentioned above schedule 19 of the same Balance sheet shows that the said expenditure is accounted for under the head change in inventories of FGs/WIP/SIP. The mischief of section 40(a)(ia) is squarely applicable in the facts of the case as it is a technical disallowance of expenditure where TDS has not been deducted as per provisions of law. In view thereof, the revised computation of income filed by the appellant is in order. It is evident that the appellant is agitating the issue in appeal only because the AO initiated penalty proce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n record. It is not in dispute that the assessee company was carrying on business of developers, colonizers, builders, contractors and is in real estate business. The AO during the course of examination of the issue, verification of the books of accounts and material on record, found that the assessee has not deducted TDS on the amount in question, therefore, it is disallowable u/s 40(a)(ia) of the Act. The assessee in response thereto filed a letter dated 23.07.2014 (Paper Book Page 34) in which the assessee admitted that the assessee has not deducted TDS on the amount in question as per law and the same needs to be disallowed. The assessee filed statement of expenses payable. The assessee, therefore, offered a sum of ₹ 1,03,57,150/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. The impugned expenditure is embedded in the work in progress which is valued at cost at the end of the year. Ld.CIT(A) in view of these facts found that it is only a case of presentation of the accounts that the impugned amount is not shown as expenses claimed in the P L A/c but debited to current assets under Schedule 14 of the balance sheet. Schedule 19 of the balance sheet shows that the said expenditure is accounted for under the head change in inventories of FG/WIP/SIP. Ld.CIT(A), therefore, correctly noted that the assessee made claim of the expenditure on which no TDS has been deducted, therefore, it is disallowable. Ld. Counsel for the assessee did not dispute the finding of fact recorded by Ld.CIT(A) and admitted that the amount ..... X X X X Extracts X X X X X X X X Extracts X X X X
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