I.T.O., Ward-1(1), Gwalior V. M/s Balaji consultants, Gwalior

ITA 7/AGR/2013

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 0656 (ITAT-AGRA)
• Duration Of Justice: 6 year(s) 4 month(s) 13 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 16-05-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 26-06-2013
• Assessment Year: 2004-2005
• Appeal Filed On: 03-01-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KK MISHRA
• Assessee Lawyers: MAHESH AGARWAL
• Keywords: TDS

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, AGRA BENCH, AGRA BEFORE : SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI A.L. GEHLOT, ACCOUNTANT MEMBER ITA NO. 06/AGRA/2013 ASSTT. YEAR : 2004-05 INCOME-TAX OFFICER, VS. M/S. BALAJI ASSOCIATES, WARD 1(1), GWALIOR. BEHIND KOTHARI MARKET, SARAFA BAZAR, LASHKAR, GWALIOR. (PAN: ABAFS 4433 P) ITA NO. 07/AGRA/2013 ASSTT. YEAR : 2004-05 INCOME-TAX OFFICER, VS. M/S. BALAJI CONSULTANTS, WARD 1(1), GWALIOR. BEHIND KOTHARI MARKET, SARAFA BAZAR, LASHKAR, GWALIOR. (PAN: AAIFM 8479 M) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI K.K. MISHRA, JR. D.R. RESPONDENT BY : SHRI MAHESH AGARWAL, C.A. DATE OF HEARING : 26.06.2013 DATE OF PRONOUNCEMENT OF ORDER : 28.06.2013 ORDER PER BHAVNESH SAINI, J.M.: THIS ORDER SHALL DISPOSE OF BOTH THE DEPARTMENTAL APPEALS FILED ON THE SAME ISSUE. ITA NO. 06 & 07/AGRA/2013 2 2. WE HAVE HEARD THE LD. REPRESENTATIVES OF BOTH TH E PARTIES, PERUSED THE FINDINGS OF THE AUTHORITIES BELOW AND CONSIDERED TH E MATERIAL AVAILABLE ON RECORD. ITA NO. 06/AGRA/2013 : 3. THE DEPARTMENTAL APPEAL IS FILED AGAINST THE ORD ER OF LD. CIT(A), GWALIOR DATED 18.10.2012 FOR THE ASSESSMENT YEAR 2004-05, C HALLENGING THE DELETION OF ADDITION OF RS.15,00,000/- MADE ON ACCOUNT OF DIFFE RENCE IN GROSS RECEIPTS AS PER TDS CERTIFICATE. 4. ASSESSING OFFICER WHILE MAKING ADDITION OF RS.15 LACS HAS DISCUSSED THE ISSUE AS UNDER : 'GROSS RECEIPTS WAS SHOWN RS.1,45,50,000/- AS AGAIN ST THE TDS CERTIFICATE IN WHICH GROSS RECEIPT FROM CONTRACT WO RK WAS RS.1,60,50,000/-. ON THE CONTRACT RECEIPT OF RS.1,6 0,50,000/- ASSESSEE CLAIMED REFUND AND ALLOWED TO THE ASSESSEE, THEREFO RE, DIFFERENCE IN RECEIPT OF RS.15 LACS ADDED TO THE INCOME OF THE AS SESSEE AS THE ASSESSEE ADOPTED MERCANTILE SYSTEM OF ACCOUNT. 4.1 ON THIS ISSUE THE ASSESSEE HAS FURNISHED FOLLO WING WRITTEN SUBMISSION BEFORE THE LD. CIT(A) : 'THE ASSESSEE HAD EXECUTED CONTRACT WORK FOR SAHARA INDIA COMMERCIAL CORPORATION LTD. LUCKNOW IN THE FINANCIA L YEAR 2003-04. THE APPELLANT WAS GRANTED WORK ORDER FOR RS.1,45,50 ,000/- ON 21/10/2003 FOR LEVELING OF SOIL AND FILLING OF GORG ES/NALLAH, REMOVING OF SHRUBS, GRASS AND RUBBISH ETC AT SAHARA STATES P ROJECT, KATNI. THE COPY OF WORK ORDER IS ENCLOSED HEREWITH. AGAINST TH IS A ADVANCE ITA NO. 06 & 07/AGRA/2013 3 PAYMENT OF RS.1,60,50,000/- WAS RELEASED ON 23/10/2 003 ON WHICH TDS OF RS.3,29,025/- WAS DEDUCTED (THE COPY OF PAYM ENT ADVICE IS ENCLOSED HEREWITH. THE APPELLANT RAISED BILL FOR RS .1,45,50000/- ON 30/03/2004(COPY OF BILL ENCLOSED).FURTHER THE EXCES S AMOUNT OF RS.15,00,000/- RECEIVED WAS SHOWN IN THE BALANCE SH EET UNDER THE HEAD CURRENT LIABILITY AS A SUNDRY CREDITORS-M/S SA HARA DEVELOPMENT COST. IN THE NEXT YEAR THE ABOVE AMOUNT WAS TRANSFERRED IN THE PARTY'S ACCOUNT ON THEIR REQUEST (COPY OF LE TTER AND PARTY'S A/C STATEMENT ENCLOSED). THE COPY OF PARTY ACCOUNT IS E NCLOSED HEREWITH. THE BOOKS OF ACCOUNTS ARE AUDITED UNDER THE 44AB OF INCOME TAX ACT. THE AUDIT REPORT & BALANCE SHEET ARE ENCLOSED HEREW ITH. ' 4.2 THE LD. CIT(A) CONSIDERING THE EXPLANATION OF T HE ASSESSEE AND MATERIAL ON RECORD, DELETED THE ADDITION. HIS FINDINGS IN THE A PPELLATE ORDER ARE REPRODUCED AS UNDER : I HAVE PERUSED THE ASSESSMENT ORDER AS WELL AS WRI TTEN SUBMISSIONS FURNISHED BY THE APPELLANT. IT HAS BEEN CLAIMED BY THE APPELLANT THAT THE SUM OF RS.15 LACS ADDED BY THE A .O TO THE INCOME OF THE APPELLANT WAS THE ADVANCE RECEIVED BY THE APPEL LANT AND NOT THE INCOME OF THE APPELLANT. IN SUPPORT OF HIS CONTENTI ON, HE HAS FURNISHED COPY OF WORK ORDER. COPIES OF CONTRACT BILL RAISED, COPIES OF CONFIRMATION LETTER FROM M/S SAHARA INDIA COMMERCIA L CORPORATION LTD. CONFIRMING THAT THE SUM OF RS.L5 LACS WERE IN THE NATURE OF ADVANCE. I HAVE PERUSED ALL THE EVIDENCES AND SUBMI SSIONS MADE BY THE APPELLANT. THE APPELLANT IS FOLLOWING 'MERCANTI LE SYSTEM OF ACCOUNTING', THEREFORE, I AM OF THE CONSIDERED VIEW THAT THE SUM OF RS.15 LACS RECEIVED BY THE APPELLANT AS AN ADVANCE WAS NOT TAXABLE IN THE A.Y. 2004-05 AS 'INCOME'. HENCE, THE ADDITION M ADE BY THE A.O OF RS. 15 LACS IS DELETED AND THE APPEAL OF THE APPELL ANT IS ALLOWED ON THIS ISSUE. 5. ON CONSIDERATION OF THE RIVAL SUBMISSIONS, WE DO NOT FIND ANY MERIT IN THE DEPARTMENTAL APPEAL. THE CERTIFICATE OF SAHARA INDI A COMMERCIAL CORPORATION LTD. ITA NO. 06 & 07/AGRA/2013 4 DATED 28.03.2004 IS FILED AT PAGE 8 OF THE PAPER BO OK TO CERTIFY THAT THE BILL OF RS.1,45,50,000/- WAS SUBMITTED FOR DEVELOPMENT WORK AT KATNI AND AMOUNT OF RS.15,00,000/- WAS PAID IN EXCESS AND IT WAS DIRECT ED THAT THE SAME BE TRANSFERRED TO THEIR LAND PURCHASE/EXPENSES ACCOUNT AND SHALL B E ADJUSTED AGAINST THEIR PENDING LAND SALE DEEDS IN THE NEXT YEAR. COPY OF BILL IS F ILED AT PAGE 9 OF THE PAPER BOOK SUPPORTED BY LEDGER ACCOUNT AT PAGE 10. THE PROFIT AND LOSS ACCOUNT OF THE ASSESSEE IS FILED AT PAGE 13 OF THE PAPER BOOK TO SHOW THAT THE TOTAL CONTRACT RECEIPTS HAVE BEEN SHOWN AT RS.1,45,50,000/-. THEREFORE, THE LD. CIT(A) ON PROPER APPRECIATION OF FACTS, RIGHTLY FOUND THAT RS.15,00,000/- WAS REC EIVED BY THE ASSESSEE AS ADVANCE AND THEREFORE, THE SAME WAS NOT INCOME OF THE ASSES SEE IN ASSESSMENT YEAR UNDER APPEAL. ON FOLLOWING THE MERCANTILE SYSTEM OF ACCOU NTING, THE LD. CIT(A) RIGHTLY DELETED THE ADDITION WHICH HAVE NO RELEVANCE TO THE GROSS RECEIPTS SHOWN IN THE TDS CERTIFICATE. THE DEPARTMENTAL APPEAL HAS NO MER IT AND IS ACCORDINGLY DISMISSED. ITA NO. 07/AGRA/2013 : 6. THIS DEPARTMENTAL APPEAL IS DIRECTED AGAINST THE LD. ORDER OF LD. CIT(A) GWALIOR DATED 18.10.2012 FOR THE ASSESSMENT YEAR 20 04-05 CHALLENGING THE DELETION OF ADDITION OF RS.12,17,950/- MADE ON ACCO UNT OF DIFFERENCE IN GROSS RECEIPTS AS PER TDS CERTIFICATE. BOTH THE PARTIES S UBMITTED THAT THE ISSUE IS SAME AS ITA NO. 06 & 07/AGRA/2013 5 IS CONSIDERED IN ITA NO. 06/AGRA/2013. FOLLOWING TH E ORDER IN THE CASE OF M/S. BALAJI ASSOCIATES, WE DO NOT FIND ANY MERIT IN THE DEPARTMENTAL APPEAL. SAME IS ACCORDINGLY DISMISSED. 7. IN THE RESULT, BOTH THE DEPARTMENTAL APPEALS ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (A.L. GEHLOT) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER *AKS/- COPY OF THE ORDER FORWARDED TO : 1. APPELLANT 2. RESPONDENT 3. CIT(A), CONCERNED BY ORDER 4. CIT, CONCERNED 5. DR, ITAT, AGRA 6. GUARD FILE SR. PRIVATE SECRETARY TRUE COPY