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TMI Blog2015 (1) TMI 479X X X X Extracts X X X X X X X X Extracts X X X X ..... ; 13,70,000/- and as the bill was also raised for the same amount, the assessee was justified in not showing his income to be ₹ 16,30,000/-. Even otherwise, it is not the case of the Revenue that the amount, which was carried forward by the assessee, does not reflect in the Balance Sheet. Therefore Tribunal was not right in holding that the AO was right under Section 143(1)(a) in adopting the income of ₹ 16,30,000/- on the basis of T.D.S. Certificate in place of ₹ 13,70,000/- which the assessee had shown as work in progress and billed Ravi Organizers. Decided in favour of assessee. - TAX APPEAL NO. 452 of 2004 - - - Dated:- 9-12-2014 - MR. KS JHAVERI AND MR. K.J.THAKER, JJ. FOR THE APPELLANT : MR JP SHAH, ADVOCATE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llowing question of law; Whether on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the Assessing Officer was right under Section 143(1)(a) in adopting the income of ₹ 16,30,000/- on the basis of T.D.S. Certificate in place of ₹ 13,70,000/- which the assessee had shown as work in progress and billed Ravi Organizers? 4. Mr. Shah, learned Advocate for the appellant, submitted that, since, the assessee had mentioned the amount in question in the account of Ravi Organizers in its Books of Accounts, the AO wrongly considered the same as prima facie adjustment and that the CIT(A) and the Tribunal also erred in confirming the same. He, then, submitted that the Tribunal f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... power of making adjustment without hearing the assessee is conferred and in fact, the wording of the provision as it stands at present makes this clear. As laid down by the Bombay High Court, under Section 143(1)(a), if, on the basis of the return which was filed by the assessee, any tax or interest is found due after adjustments, as set out in the section, an intimation shall be sent to the assessee specifying the sum+ so payable and in the same manner, if any refund is due to the assessee on the basis of such return, it shall be granted to the assessee. Thus, from the above, it can be said that the AO shall not make an adjustment of the nature, which would require an examination of the evidence or a hearing to be given to the assessee. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the amount, which was carried forward by the assessee, does not reflect in the Balance Sheet. We are, therefore, of the opinion that the CIT(A) was erred arriving at a conclusion, which was confirmed by the Tribunal, that the claim of the assessee is not supported by any evidence. Therefore, in view of the relevant provisions of the Act and the view taken by the Bombay High Court and Gauhati High Court, as above, the AO was not justified in taking the amount in question to be prima facie adjustment. We hold that in light of the decision of the Gauhati High Court in GEORGE WILLIMSON (A) LTD. VS. CIT ANR. (Supra) and the factual scenario as it emerges, we are unable to accept the submission of Mr. Mehta that the case would not be cove ..... X X X X Extracts X X X X X X X X Extracts X X X X
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