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6. Next issue relates to disallowance of ` 60,000/- relating to surplus income. The Assessing Officer noticed that the assessee has reported receipt from M/s. Posco Engineering & Construction Co. Ltd. at ` 32.16 lakhs whereas, in its ITS details, it was shown that the assessee has received a sum of ` 32.72 lakhs from M/s. Posco Engineering & Construction Co. Ltd. Hence, the Assessing Officer added a sum of ` 60,000/- to the total income of the C l iq u e C o ns u l t a n ts P v t . L td .

assessee, being the difference between the income from M/s Posco reported by the assessee and shown in ITS details. Before the learned CIT(A) the assessee submitted that M/s. Posco Engineering & Construction Co. Ltd. has reported income at ` 32.72 lakhs erroneously and the assessee did not raise any such bills on them for the difference amount. It also submitted that TDS deducted by M/s. Posco Engineering & Construction Co. Ltd. tallies with the income reported by the assessee. However, the learned CIT(A) was not convinced with the explanations of the assessee and accordingly confirmed the addition.

7. Before me, learned AR furnished a copy of Form No. 26AS (ITS details) and submitted that on 2nd May 2011, M/s. Posco Engineering & Construction Co. Ltd., has shown in ITS details that it has deducted a sum of ` 25,037/- as TDS from the amount of ` 3,07,122/-. He submitted that M/s. Posco Engineering & Construction Co. Ltd. should have deducted tax of ` 30,712/- on the payment of ` 3,07,122/-, where as the TDS amount was shown as Rs.25,037/- only. The Ld A.R submitted that the assessee had actually raised a bill of ` 2,50,374/- only and hence M/s. Posco Engineering & Construction Co. Ltd. had deducted tax of ` 25,037/-. Accordingly, learned AR submitted that M/s. Posco Engineering & Construction Co. Ltd. had committed a mistake in reporting figure of ` 3,07,122/-.

8. On the contrary, learned Departmental Representative supported the order passed by the learned CIT(A) on this issue.

9. Having heard the rival submissions, I am of the view that there is merit in the contentions of the assessee. As per reconciliation statement furnished by the assessee in page No. 9 of the paper book, I notice that the assessee has raised a bill of ` 2,50,374/-, on which M/s. Posco Engineering & Construction Co. Ltd., has deducted tax at source @ 10% at ` 25,037/-. If the bill amount had been Rs.3,07,122/-, M/s Posco would have deducted a tax of Rs.30,712/-. I notice that M/s Posco has reported the TDS amount correctly and as per the assessee, it has committed a mistake in reporting the income in ITS details.