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2018 (8) TMI 664

he form of letter dated 14.7.2015 from a chartered accountant along with the reply to section 154 notice before the ld AO stating that there was a clerical typing error in the notes on accounts point no. 2.6. “Revenue Recognition”. - Held that:- There is no dispute that the TCS collected by the assessee from the buyer of liquor from the assessee, had been duly remitted to the account of the Central Government by the assessee. Hence we have no hesitation in holding that there is absolutely no error committed either by the assessee with regard to TCS, sales tax and excise duty or by the ld AO. Hence the order of the ld AO cannot be treated as erroneous warranting revisionary jurisdiction u/s 263 of the Act. - Regarding valuation of st .....

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circumstances of the case. 3. The brief facts of this appeal are that the assessee is a private limited company and is an agent of liquor, bottling plant of liquor and engaged in investment activities. The return of income for the Asst Year 2012-13 was electronically filed by the assessee on 30.9.2012 declaring total income of ₹ 43,10,479/- . The assessment was completed u/s 143(3) of the Act on 22.3.2015 determining the total income of the assessee at ₹ 69,00,00/- under the normal provisions of the Act and ₹ 40,04,138/- u/s 115JB of the Act. The following additions were made in the assessment under normal provisions of the Act :- a) Disallowance u/s 14A read with Rule 8D - ₹ 12,34,419/- b) Disallowance u/s 43B - &# .....

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assessment of income of ₹ 94,99,332/-. B. TCS is a prepaid tax and the assessee is eligible for claiming credit of the same while computing tax payable. Accordingly, the assessee claimed TDS/TCS credit of ₹ 1,16,597/- and the same was allowed in the assessment. Further, the assessee claimed deduction of TCS of ₹ 1,14,270/- from sales. TCS is not deductible from Sales but deduction of the same from sales resulted in reduction of income. Deduction of TCS of ₹ 1,14,270/- claimed by the assessee was required to be disallowed and added back. Omission to do so resulted in under assessment of income of ₹ 1,14,270/-. 5. The assessee stated that there were clerical errors in the Notes to Accounts in Point No. 2.6. rela .....

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company explained that gross sales include Excise Duty, Sales Tax, and TCS collected from Vendor. That in same letter the company admitted that remark given in note no. 2.6 Revenue recognition stating Sales includes Excise Duty but excludes Sales Tax and VAT, was a clerical typing error made by the auditor of the company in its audited annual accounts of the company for the year ended on 31st March, 2012. For the purpose, the auditor of the company issued the clarification letter dated 14.07.2015, said clarification letter was filed along with letter of the company. 4. That during the course of proceeding the company also filed a statement of sales party wise having details of quantity, rate, gross total, goods value, sale tax, excise duty .....

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at Sales includes Excise Duty but excludes Sales Tax and VAT which was clerical typing error for which a certificate was enclosed from a Chartered Accountant. TCS deducted in Note No. 18 is the TCS collected by the assessee on the sales from Vendor which was later deposited to the account of the Central Government. The assessee sells Alcoholic Liquor on which they had to collect TCS from the Vendor of the sales amount. It was duly clarified by the assessee that the tax credit claimed by it while computing the tax liability in the form of TCS / TDS was not the tax collected at source from the sale of liquor made by the assessee. The assessee duly placed the clarification in the form of letter dated 14.7.2015 from a chartered accountant along .....

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buyer , the applicable TCS which is included in the invoice raised on the buyer and the said TCS was duly remitted by the assessee to the account of the Central Government. The assessee also had placed the entire date wise and party wise sales statement for the period 1.4.2011 to 31.3.2012 clearly mentioning the quantity, rate per case, value of goods, value of sales tax, value of excise duty and value of TCS as tabulated above. The assessee had also placed the sample invoices to justify its claim in the sales statement. These details with evidences were filed before the ld AO which are part of the assessment records. The ld CIT factually misunderstood the TCS deducted to the credit of the assessee herein with the TCS collected by the asses .....

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towards excise duty in the profit and loss account ( in respect of goods lying in closing stock) for consequential inclusion of the same in the valuation of closing stock as per section 145A of the Act. Hence we hold that there is no violation of section 145A of the Act. All these details were duly available before the ld AO himself which has been duly appreciated by the ld AO while framing the assessment by not making any addition towards the same. With regard to one more aspect of applicability of provisions of section 43B of the Act, we find that the ld AO had elaborately looked into the disallowance u/s section 43B of the Act in the assessment and had even made disallowance of ₹ 97,481/- u/s 43B of the Act in the assessment. Henc .....

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