Loading judgment…
No AI summary yet for this case.
Income Tax Appellate Tribunal, AHMEDABAD “B” BENCH
Before: SHRI N.K. BILLAIYA & SHRI MAHAVIR PRASAD
PER N.K. BILLAIYA, ACCOUNTANT MEMBER
ITA No. 2208/Ahd/2014 & 2 C.O. No. 265/Ahd/2014 . A.Y. 2007-08 1. This appeal by the Revenue and cross objection by the Assessee are directed against the order of the Ld. CIT(A)-V, Baroda dated 07.05.2014 pertaining to A.Y. 2007-08.
The sum and substance of the grievance of the revenue is that the ld. CIT(A) erred in admitting additional evidence and further erred in setting aside the matter to the files of the A.O.
While scrutinizing the return of income, the A.O. noticed that the assessee has contract income from transportation amounting to Rs. 2,59,10,656/-. The A.O. further found that the credit of TDS was allowed to the extent of Rs. 5,47,117/-. Considering the TDS certificate, the A.O. found that the assessee has shown hire charges income of Rs. 2,41,86,122/-. The A.O. was of the opinion that the assessee has suppressed hire charges of Rs. 17,24,534/-. The assessee was asked to explain the difference. The assessee filed a detailed reply and the same reads as under:-
"I would like to submit that during the assessment year 2007-2008 we have shown total income of Rs. 2,57,18,925/- which includes Hire Income Rs. 2,41,86,122/-, Transport Income of Rs. 9,02,203/- and Transport Income Incoming Income of Rs. 6,30,600/-. I would like to inform your goodness that our customer has deducted as follows :
Hire Income . Rs. 2,41, 86,122.00
Add : Transport Income Rs. 9,02, 203.00
ITA No. 2208/Ahd/2014 & 3 C.O. No. 265/Ahd/2014 . A.Y. 2007-08 Add : Transport Income booked in previous year on Rs. 8,77,732.00 which TDS deducted in current Year.
Bell Ceramic Limited Rs. 7, 64, 932.00
TCP Limited Rs. 1,12, 800.00
Sub Total Rs. 2,59,66, 057. 00
Less : Income Shown in current year but TDS deducted in next financial year.
TCP Limited Rs. 39,200.00 Rs. 39,200.00
Income Shown in Books of Account Rs. 2,59,26,857.00
Income As per TDS Certificate Rs. 2,59,11,196.00
After considering the reply of the assessee in the light of the evidences submitted by it, the A.O. was of the opinion that the assessee has explained the difference to the extent of Rs. 1,12,800/- but has not filed any explanation for the balance of Rs. 16,11,734/-. The A.O. accordingly added Rs. 16,11,734/- to the income of the assessee.
Assessee carried the matter before the ld. CIT(A) and once again submitted the detailed reconciliation statement. In respect of the difference of Rs. 16,11,734/-, the assessee explained as under:-
Difference as per AO Rs. 16,11,734/- Transport Income not considered by the A.O. Rs. 9,02,203/- Difference Rs. 7,09,531/- Less Income offered in earlier year but
ITA No. 2208/Ahd/2014 & 4 C.O. No. 265/Ahd/2014 . A.Y. 2007-08 TDS deducted by party in this year. Rs. 7,64,392/- Difference Rs. 55,000/-
The assessee also submitted party-wise reconciliation of TDS and after examining the same, the ld. CIT(A) came to the conclusion that the assessee has successfully reconciled the difference. However, the ld. CIT(A) directed the A.O. to verify the reconciliation and after verification to delete the addition of Rs. 16,11,734/-, If the reconciliation is found to be correct.
Aggrieved by this, the revenue is before us. At the very outset, we would like to state that the assessee has not filed any additional evidence before the First Appellate Authority. We find that the assessee has filed a detailed reconciliation statement in extension of the reconciliation statement filed before the A.O. Since, the First Appellate Authority has directed the A.O. to verify this elaborate reconciliation statement before giving the appeal effect, we fail to understand how the revenue can say that the ld. CIT(A) has set aside the issue beyond the powers conferred upon him by the Act.
A conspectus reading of the cross objection of the assessee shows that while giving the appeal effect, the A.O. has agreed to give appeal effect by accepting the reconciliation made by the assessee. Since, there is no error or infirmity in the findings of the ld. CIT(A), we decline to interfere.
ITA No. 2208/Ahd/2014 & 5 C.O. No. 265/Ahd/2014 . A.Y. 2007-08 9. Appeal filed by the Revenue is dismissed and the cross objection of the Assessee becomes infructuous.
Order pronounced in Open Court on 19 - 05- 2017
Sd/- Sd/- (MAHAVIR PRASAD) (N. K. BILLAIYA) JUDICIAL MEMBER True Copy ACCOUNTANT MEMBER Ahmedabad: Dated 19 /05/2017
Rajesh Copy of the Order forwarded to:- 1. The Appellant. 2. The Respondent. 3. The CIT (Appeals) – 4. The CIT concerned. 5. The DR., ITAT, Ahmedabad. 6. Guard File. By ORDER
Deputy/Asstt.Registrar ITAT,Ahmedabad