Indian Kanoon - Search engine for Indian Law

M/s Shri Jeen Mata Buildcon Pvt. Ltd.

"1. The ld. CIT(A) erred in law as well as on the facts of the case in confirming the addition, so made, of Rs. 18,78,750/- & 15,23,978/- on account of difference between the amount reflected as per TDS Form 26AS and receipts recorded in books of accounts. The addition so made and confirmed by the CIT(A) being totally contrary to the provisions of law and facts of the case, kindly be deleted in full.

4. The appellant prays your honour indulgences to add, amend or alter of or any of the grounds of the appeal on or before the date of hearing."

4. The relevant facts, as culled out from the records is that, the assessee company is engaged in the business of labour contractor supplier with machinery under affordable housing policy for the year under consideration. The assessee company filed its return of income declaring income at Rs. 5,21,007/- on 30.03.2015 through e-filing portal and the same was processed u/s 143(1) of the Income Tax Act, 1961. Later on, the case was selected for scrutiny through CASS due to difference in turnover between 26AS and books of account. In the assessment proceedings, the Assessing Officer has observed that turnover M/s Shri Jeen Mata Buildcon Pvt. Ltd.

10. We have considered the rival submissions. The ld. AR of the assessee argued that merely there is a difference in the 26AS and the books results, there cannot be an addition to returned income the books of account of the assessee duly audited. AO has not found any single defect in the books of accounts that has been produced before the Assessing Officer. The assessment completed u/s 143(3) of the Act. Even, the inquiry made u/s 133(6) has properly been explained by the AR of the assessee in the assessment proceedings and reply is reproduced in the assessment order. The main contentions is that the other party has booked the expenses, that cannot be the reason while making the assessment in the case of the assessee, when the contract receipt got reflected in the subsequent year as per regular method of accounting followed. Surprisingly one addition is based on 26AS amount and amount in books and another from the expenses booked by the assessee and income of two years comparison. This shows how the additions were made by followings choose & pick. It is only elementary that information as per data base of the Revenue M/s Shri Jeen Mata Buildcon Pvt. Ltd.

Reconciliation Chart as per Assessee
F.Y.                      Siddhi Vinayak                              Bhairav Township
            As per Books As per 26AS        Variance      As per Books As per 26AS        Variance
2011-12                                                   38,00,000     10,00,000        28,00,000
2012-13     67,84,050      86,62,800       (18,78,750)    1,07,00,000 1,40,00,000       (33,00,000)
2013-14     59,99,625      59,99,625         -            15,00,000      10,00,000         5,00,000
2014-15     36,47,947      20,62,500        15,85,447      -                                  -
2015-16     95,911              -                95,911    -                                  -
  Net
Variance    1,65,27,533     1,67,24,925 (197,392)         1,60,00,000     1,60,00,000             -