9911796707
TMI Blog2014 (12) TMI 341X X X X Extracts X X X X X X X X Extracts X X X X ..... fied and wrong in rejecting the Books of Accounts u/s 145 of the Income Tax Act, 1961 maintained in the regular course of business. 2. That the Tax Authorities were wrong in not appreciating the fact that books of accounts maintained in the same manner in earlier years consistently were accepted by the Department and thus the Authorities were wrong in taking an adverse view on the said matter. 3. That the Learned CIT (Appeal) was wrong to hold and in coming to a perverse finding that "there are conclusive reasons to reject the assessee's books of accounts as the assessee deliberately not included the centage receivable on WIP only in order to suppress its taxable income and also in stating further the opening balance of WIP has never been considered for tax in any past year and the centage on the same has never been shown by the assessee, hence the addition on the basis of opening WIP was correctly made. 4. That the Learned CIT(Appeal) was wrong in upholding the view of the Learned AO so as to reject the Books of Accounts u/s 145(3) of the Income Tax Act, 1961 without indicating as to how the books of accounts are not correct or complete for computing the income. 5. That th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he conclusion that there is no mistake apparent on record are not applicable to the present facts of the case and were wrongly applied. 6. That power to rectify mistake apparent on record is mandatory and the Authorities committed wrong in not exercising the power which resulted in gross injustice to the Assessee. 7. That the Learned AO passed the order in making in addition of Rs. 8,48,27,27,094/- by overlooking the Statutory Provision which is clearly a mistake apparent on record which was wrongly upheld by the Learned CIT (Appeal). 8. That the orders passed by the Authorities are against facts and law." 4. It was submitted by Learned A.R. of the assessee that the statements showing the working of centage for the current year is available on page No. 271 of the paper book and the same working for the preceding years from assessment year 2004-05 to 2008-09 are available on pages 362 to 367 of the paper book. He also submitted that centage was considered in each year and thereafter, the closing work in progress was determined and therefore, the addition made by the Assessing Officer is not justified. At this juncture, the Bench wanted to know the basis of accounting for centage ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee has to furnish complete details along with the supporting evidence before the Assessing Officer in respect of receiveability of centage/supervisory charges as per contracts and thereafter, the Assessing Officer should determine the exact value of centage/supervisory charges and closing stock of WIP. Needless to say, the Assessing Officer should provide adequate opportunity of being heard to the assessee. 7. In the result, the appeal of the assessee in proceedings u/s 143 (3) stands allowed for statistical purposes. 8. Regarding the appeal of the assessee in respect of order passed by the Assessing Officer u/s 154 of the Act i.e. I.T.A. No.574/Lkw/2012, we find that the dispute in this appeal is also same i.e. regarding addition of Rs. 1,06,03,40,887/- in respect of centage receivable and since the issue involved is already restored back to the file of Assessing Officer by us for fresh decision, this appeal of the assessee for rectification u/s 154 does not survive and accordingly rejected. 9. In the result, the appeal of the assessee stands dismissed. 10. Now we take up the appeal of the Revenue i.e. I.T.A. No.108/Lkw/2013. In this appeal, the Revenue has raised the follo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat in fact, this amount of interest income is earned in respect of interest on unutilized fund (payable to U.P. Government). Hence, we set aside the order of CIT(A) and restore the matter to the file of the Assessing Officer for fresh decision after examining this contention of the assessee that as per the direction of the U.P. Government, from whom the grant was received by the assessee, if any unutilized fund is kept in bank and any interest is earned then such interest income is not income of the assessee and it has to be treated as extra grant by the Government. For this, the assessee should make available before the Assessing Officer, the total working of this interest income and the assessee should establish that this interest income is in fact regarding keeping of the unutilized fund provided by U.P. Government in bank. The assessee should also provide the evidence that such interest earned by the assessee has been in fact returned by the assessee to U.P. Government or the U.P. Government has approved that such interest should be considered by the assessee as extra grant. The Assessing Officer should pass necessary order as per law as per above discussion after affording ad ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
