Loading judgment…
No AI summary yet for this case.
Income Tax Appellate Tribunal, “SMC”, BENCH MUMBAI
Before: SHRI R.C.SHARMA, AM & SHRI C.N. PRASAD, JM
आदेश / O R D E R PER R.C.SHARMA (A.M):
This is an appeal filed by the assessee against the order of CIT(A)- 21, Mumbai dated 14/12/2015 for A.Y.2007-08 in the matter of order passed u/s.143(3) of the Income Tax Act 1961. 2. First grievance of assessee relates to confirming the addition of Rs.17,81,896/- made by the AO as undisclosed income being sales not accounted for.
M/s. Sundial Creative Media Pvt. Ltd., 3. Rival contentions have been heard and record perused. Facts in brief are that assessee is engaged in the business of media / production house for advertisement, films etc., During the course of assessment, the Assessing Officer noted that the assessee had declared sales of Rs.26,72,844/-. On the other hand, on verification of TDS certificates, the Assessing Officer noticed that gross receipt were amounting to Rs.50,00,000/-. The assessee did not claim TDS in the return of income and reflected a lower amount as its income. The TDS has been made by M/s. Group M Media India Pvt. Ltd., It had made payment of Rs.50,00,000/- to the assessee company during the year. In the confirmation filed before the Assessing Officer in response to notice u/s.133(6), copy of ledger statement and copy of agreement was filed by M/s. Group M Media India Pvt. Ltd and it confirmed the payment made of Rs.50,00,000/- to assessee company. As per the assessee they have considered Rs.30,00,000/- as income in the current year which is net of service tax at Rs.3,27,156/- amounting to Rs.26,72,844/- which was shown in the profit and loss account. As far as the balance of Rs.20,00,000/- is concerned it was submitted that it includes an amount of service tax of Rs.2,18,104/-. However, AO did not agree and brought to tax entire amount received as assessee’s income and the action of the AO is confirmed by CIT(A).
It was contended by learned AR that during the year under review, the assessee company received Rs.50,00,000/- from M/s. Group M Media M/s. Sundial Creative Media Pvt. Ltd., India Pvt.Ltd. The assessee company was entitled to receive Rs.2.5 Lakhs per month including service tax and accordingly Rs.30 Lakhs was shown as sales including service tax ( net of service tax Rs.26,72,844/-) ''The contractee company M/s. Group M. Media India Pvt. Ltd issued TDS certificate for total sum of Rs.50,00,000/- and made TDS accordingly on the basis of payments made to the appellant (contractor.) The balance of Rs.20,00,000/-(including service tax ) relates to the subsequent year and accordingly it was accounted as income in the assessment year 2008- 2009. Copy of agreement between assessee and the contractee company was filed on the records of Assessing Officer in the course of assessment proceedings.
Our attention was also invited to the balance amount offered in the subsequent years and which have been brought to tax. Considering the entirety of facts and circumstances, we restore this matter back to the file of the AO for deciding afresh after verifying the fact that balance amount has been offered by the assessee in the subsequent years in terms of its agreement having been entered into with M/s. Group M Media India Pvt. Ltd., We also observe that incase AO do not agree to reduce the current year’s income, then he should reduce the income offered in the subsequent assessment years 2008-09 by Rs.17,81,896/- , otherwise it amounts to double taxation of the same income. We direct accordingly.