TMI Blog2018 (11) TMI 1432X X X X Extracts X X X X X X X X Extracts X X X X ..... . Addition of contract receipts - There is a difference on account of opening balance in respect of ledger accents with the assessee and ledger accounts of Vaman Prestressing Co. Pvt. Ltd., hence the amount of ₹ 5,29,764/- has been rightly added by the AO and confirmed by the CIT(A). The contention of the AR that only net profit is to be taxed is without any basis as this difference is on account of actual receipts, hence, the said income remained to be taxed, accordingly this ground of appeal of the assessee is dismissed. Addition towards kitchen expenses - no pointing out any specific defects in the vouchers made by the AO - Held that:- No merit in confirmation of such addition, accordingly same is directed to be deleted, thi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the order passed by the Income Tax Officer, Ward-4, Surendranagar(in short the AO ) dated 31.12.2009 under section 143(3) of Income Tax Act,1961 (in short the Act ). 2. Ground No.1.1 to 1.6 relates to confirming addition of ₹ 10,58,063/- being difference in contract receipts. The AO found that the assessee has shown contract receipts of ₹ 80,90,655/- as against contract receipts of 91,48,7818/- shown in the Form-16A (TDS certificate). Thus, there was difference an amount of ₹ 10,58,063/- it was explained that TDS certificate receipts are shown on payment basis, therefore it also included TDS of advance payment whereas the assessee accounts the contract receipt on receipt basis. The assessee has filed receipts a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for which 100% cannot be added as held by Gujarat High Court in the case of President Industries 258 ITR 654, and Balchand Ajitkumar 263 ITR 610 (MP). Therefore, the only profit element to be taxed and on the gross receipts. The assessee has cited various decision of Coordinate Benches wherein they have taxed the Gross Profit 4 to 8% of such contract receipts. 5. Per Contra, the ld.Senior Departmental Representative (Sr.DR) perused the written submissions filed by the AR of the assessee and submitted that it is an undisputed fact that the assessee following Mercantile System of accounting the receipts shown in TDS certificate in Form 16A should have been accounted for in the books of accounts. Therefore, the difference amount of S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied will not solve the problem. The appellant is required to show as to why the provision was made by the party and not by the assessee and how the same does not affect the income of the Assessee. Therefore, the account being disallowed duly for the year 2006-07 is on account of actual bill and not provision accordingly this addition was came to be confirmed. 9. Being aggrieved, the assessee files this appeal before us. The ld.AR vide written submission contended that the admission by he AO that the opening balance found of ₹ 3,13,646/- relates to opening balance, thus, when there is a difference in closing balance which is not reflected as opening balance then only the question of additions remains. The AO has not made out a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 377; 75,000/- made towards labour expense. 15. We have heard the parties and find that the AO has made disallowance of 75,000/- pertaining to labour expenses out of total expenses of ₹ 57,05,271/-. However, we find that disallowance made without any specific defect pointing out by the AO, therefore such disallowance of ₹ 75,000/- are directed to be deleted. 16. Ground No.5.1 to 5.2 relates to confirming the addition of ₹ 20,000/- made towards travelling expenses. 17. We have heard the parties and find that the AO made disallowance of 20% considering the same as personal in nature, hence, the element of personal use of travelling does not denied. We do not find any infirmity in the order of CIT(A), accordi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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