Dadi Maa Consultant & Contract Management, Bhubaneswar V. ITO, Ward-2(1), Bhubaneswar

ITA 55/CTK/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 5084 (ITAT-CUTTACK)
• Duration Of Justice: 1 year(s) 3 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-05-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 12-02-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: TDS

Judgement Text

ITA NO.55/CTK/2018 ASSESSMENT YEAR: 2009 - 2010 P A G E 5 | 12 7. I HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD OF THE TRIBUNAL. THERE IS NO DISPUTE TO THE FACT THAT THE ASSESSEE HAS RAISED BILLS OF RS.41,27,928/ - , BUT THE CONTRACTEE RECOGNIZED BILLS TO THE EXTENT OF RS.39,27,928 / - , WHICH RESULTED THE DIFFERENCE OF RS.2 LAKHS . FROM THE LEDGER ACCOUNT, IT IS ALSO SEEN THAT THE ASSESSEE HAS RAISED BILL DATED 21.11.2008 AMOUNTING TO RS. 4 ,92,230.00 AS REFLECTED IN THE LEDGER ACCOUNT OF DADIMAA CONSULTANT & CONTRACT MANAGEMENT , HOWEV ER, AS PER TDS CERTIFICATE, BHUSAN STEEL LIMITED HAS ACCOUNTED FOR RS. 2 ,92,230.00 AND BALANCE OUTSTANDING AS PER LEDGER OF BHUSAN STEEL LTD., THE AMOUNT WAS SHOWN AT RS.33,02,286.00 . AT THE SAME TIME, IT IS SEEN THAT IN BILL DATED 21.11.2018 AS REFLECTED IN THE LEDGER OF SRI DADIMAA CONSULTANT & CONTRACT MANAGEMENT, THE BILL HAS BEEN RAISED AT RS.2,92,230/ - AND AS PER TDS CERTIFICATE, RS.4,92,230/ - HAS BEEN ACCOUNTED FOR AND BALANCE OUTSTANDING WAS SHOWN AT RS.35,02,286/ - . IT IS CLEARLY DISCERNABLE FROM THE RECONCILIATION STATEMENT S FILED BY THE ASSESSEE AT THE TIME OF HEARING. ONCE THE CONTRACTEE HAS NOT RECOGNIZED RS 2 LAKHS OUT OF THE BILLS RAISED BY THE ASSESSEE, SAME CANNOT BE TREATED AS INCOME OF THE ASSESSEE. 8. I ALSO POINT OUT IN CIT(A)S ORDER AT PARA 5, AN AMOUNT OF RS.2 LAKHS WAS DELETED ON ACCOUNT OF EXCESS LIABILITY. I OBSERVE ITA NO.55/CTK/2018 ASSESSMENT YEAR: 2009 - 2010 P A G E 6 | 12 THAT ONCE AGAIN MAKING ADDITION OF RS.2 LAKHS ON ACCOUNT OF EXCESS LIABILITY WILL AMOUNT TO DOUBLE ADDITION. HOWEVER , FROM PARA 4 OF THE CIT(A)S OR DER, I OBSERVE THAT THE GROUND OF THE ASSESSEE CHALLENGING THE ADDITION ON ACCOUNT OF SHORT RECEIPT FROM BHUSAN STEEL LIMITED HAS BEEN CONFIRMED WHICH TRIGGERED GROUND NO.2 OF THE ASSESSEE BEFORE THIS BENCH. 9. A SITUATION MAY BE ARISEN THAT ONCE THE ASSES SEE RAISED BILL A HIGHER AMOUNT AND THE CONTRACTEE SETTLES THE SAME BILL AT A LESSER AMOUNT AND DEDUCT TDS ACCORDINGLY AND THE DIFFERENTIAL AMOUNT OF LESSER PAYMENT WILL OBVIOUSLY REFLECT IN THE LEDGER AS WELL AS RECONCILIATION STATEMENT. 10. IN VIEW OF FOREGOING DISCUSSION, I RESTORE THIS ISSUE TO THE FILE OF THE ASSESSING OFFICER TO VERIFY THE TDS CERTIFICATE ISSUED BY THE CONTRACTEE AGAINST BILL DATED 21.11.2008 AMOUNTING TO RS.4,92,230/ - AND IF THE ASSESSING OFFICER FINDS THAT THE CONTRACTEE HAS SET TLED BILL RS.2,92,230/ - AND HAS MADE PAYMENT ACCORDINGLY AFTER DEDUCTING TDS ON THE SAME AMOUNT, THEN, IMPUGNED ADDITION OF RS.2 LAKHS ON ACCOUNT OF SHORT RECEIPT FROM BHUSAN STEEL LIMITED BEING NOT SUSTAINABLE SHOULD BE DELETED. ACCORDINGLY, FOR THIS LIM ITED PURPOSE, THIS ISSUE IS RESTORED TO THE FILE OF THE ASSESSING OFFICER.