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Income Tax Appellate Tribunal, ‘C’ BENCH, BANGALORE
Before: SHRI VIJAY PAL RAO & SHRI INTURI RAMA RAOShri S.M.Arshad,
Per INTURI RAMA RAO, AM :
This is an appeal filed by the assessee directed against the order of the CIT(A)-VI, Bangalore, dated 16/08/2012 for the assessment year 2008-09.
2 The assessee raised the following grounds of appeal:
Ground Nos.1 to 4 relate to assessment of deemed dividend of Rs.27,63,459/-. Facts of the case are identical to the facts in assessment year 2007-08 decided by us by order of even date in ITA No.1384/Bang/2012. For the same reasons stated in our order of even date, we uphold the addition and dismiss the grounds of appeal.
4. Ground No.5 relates to addition of Rs.36,686/- on account of difference in recognition of income following cash system of accounting. The Assessing Officer made addition taking into consideration gross receipts mentioned in TDS certifiate of Page 3 of 3 Rs.11,67,981/- in respect of income from M/s.H.M.Leisure. It was explained that income was offered in respect of M/s.H.M.Leisure on cash basis whereas TDS certificate was issued by the deductor on the basis of mercantile basis system. It was stated that the assessee was following consistently this method of recognising income in respect of M/s.H.M.Leisure , Following the principle of consistency,we hold that the addition of Rs.36,686/- is not warranted and therefore, we direct the AO to delete the addition.
In the result, appeal filed by the assessee is partly allowed.