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TMI Blog2018 (11) TMI 1432X X X X Extracts X X X X X X X X Extracts X X X X ..... d-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 Rs. 10,58,063/- being difference in contract receipts. The AO found that the assessee has shown contract receipts of Rs. 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 Rs. 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 account along with contra account of Vaman Prestressing Co. Pvt. Ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ident 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 Rs. 10,58,063/- has rightly been taxed by the AO. 6. We have heard ld.Senior Departmental ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t 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 Rs. 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 case that the closing balance has not been brought as opening balance by assessee and therefore the addition being baseless need ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tal expenses of Rs. 57,05,271/-. However, we find that disallowance made without any specific defect pointing out by the AO, therefore such disallowance of Rs. 75,000/- are directed to be deleted. 16. Ground No.5.1 to 5.2 relates to confirming the addition of Rs. 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), accordingly the same is confirmed. Therefore, this ground of appeal is dismissed. 18. Ground No.6.1 to 6.2 relates to confirming addition of Rs. 10,000/- made towards vehicle expenses. 19. We have he ..... X X X X Extracts X X X X X X X X Extracts X X X X
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