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TMI Blog2022 (5) TMI 929X X X X Extracts X X X X X X X X Extracts X X X X ..... ding services for computer hardware products. The revenue from operations includes sales of products and services of products. The assessee had filed its return of income for the assessment year 2014-15 on 28.11.2014 declaring Nil total income. The assessment has been completed u/s. 143(3) of the Income Tax Act, 1961, dated 28.12.2016 and determined total income at Rs. 9,34,69,020/- by making various additions, including additions towards understatement of stock amounting to Rs. 7,56,20,161/- on the ground that the assessee has understated its turnover in books of account. Aggrieved, the assessee filed an appeal before the learned CIT(A), and challenged additions made by the Assessing Officer towards understatement of gross profit on turnov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , which resulted in overlapping of receipts under both categories. 2.3 The Ld. CIT(A) overlooked the fact that the assessee put forward contradictory statements during the scrutiny proceedings and while submitting rejoinder to the remand proceedings inasmuch as the claim of the assessee during the scrutiny proceeding was that for comprehensive AMC charges it showed 70% & 30% respectively in Service Tax and VAT regime, whereas in the rejoinder it was submitted that they have shown 70% of the comprehensive AMC in both Service Tax Return/VAT. 2.4 The Ld. CIT(A) failed to appreciate that in proving a claim the primary onus is on the assessee which it failed to discharge and the claim of overlapping of revenue under Service Tax/VAT have been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iliation explaining overlapping of turnover declared in service tax returns and VAT returns and also furnished necessary details. The Assessing Officer ignoring all evidences filed by the assessee has summed up turnover declared under VAT return and service tax return and then compared with sales declared in the financial statement to arrive at difference. During appellate proceedings, the assessee has filed complete details and also reconciliation between turnover declared in sales tax and service tax returns. The learned CIT(A), after considering relevant facts has rightly deleted additions made by the Assessing Officer and their order should be upheld. 5. We have heard both the parties, perused material available on record and gone thro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ddition at Rs. 7,56,20,161/-. 6. We have given our thoughtful consideration to the reasons given by the Assessing Officer in light of various arguments advanced by the learned AR for the assessee along with service tax return and VAT return filed by the assessee for relevant period and we ourselves do not subscribe to reasons given by the Assessing Officer for simple reason that there is overlapping of turnover reported in service tax return and VAT return due to comprehensive nature of AMC contracts undertaken by the assessee. As we have already stated in earlier part of this order, the assessee is in the business of sales and service of computer hardware products and the assessee has also taken AMC contracts. The comprehensive AMC contra ..... X X X X Extracts X X X X X X X X Extracts X X X X
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