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TMI Blog2015 (9) TMI 1344X X X X Extracts X X X X X X X X Extracts X X X X ..... terest payable under section 234B for the purpose of adjustment against the tax paid under section 140A has to be computed with respect to assessed tax determined on the basis of total income declared in the return. But this is only for the limited purpose of adjustment of payment made u/s. 140A against interest payable under section 234B while making computation of interest payable by the assessee under section 234B, which has to be computed with respect with respect to the total income determined in regular assessment as per the definition of assessed tax given in section 234B. The assessee has also followed the same procedure with which we agree. The or of CIT(A) confirming the method followed by the AO is therefore, set aside and the claim of the assessee is allowed - Decided in favour of assessee for statiscal purposes. - ITA NO. 6533/MUM/2012 - - - Dated:- 31-8-2015 - SHRI G.S.PANNU AND SHRI AMIT SHUKLA, JJ. For The Assessee Shri Girish Dave and Ms. Kadambari Dave For The Revenue Shri Premanand J. ORDER PER G.S. PANNU,AM: The captioned appeal is preferred by the assessee and is directed against the impugned order dated 09/08/2012 of CIT(A)-3, Mumb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessee has been rejected without any third party verification. It has been pointed out that there is no material to prove that the entries appearing in the AIR were liable to be taken as professional receipts taxable in the hands of the assessee over and above what has been shown by the assessee in its books of account. The explanation rendered by the assessee before the lower authorities, which has been reproduced in the respective orders, have also reiterated before us. Apart there-from, the Ld. Representative for the assessee referred to the following decisions of the Mumbai Bench of the Tribunal for the proposition that no addition could be made solely on the basis of the AIR information without cross checking with the respective parties:- 1. A. F. Ferguson Co., ITA No. 5037/Mum/2012 dated 17/10/2014 (Mumbai ITAT). 2. A. F. Fergusson Associates ITA No.6962/M/2012 dated 28/2/2014 (Mumbai ITAT). 3. S. B. Ballimoria Co. ITA No. 297/Mum/2012 dated 17/4/2015 (Mumbai ITAT). 4. Reliance Broadcast Network Ltd. ITA No. 3531/M/2013 dated 27/5/2015 (Mumbai ITAT) 5. On the other hand, Ld. Departmental Representative pointed out that there was difference in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disputed, there was no justification for the CIT(A) to have held that the difference in the professional receipts based on the AIR information was to be assessed in the hands of the assessee. We, therefore, set aside the order of the CIT(A) on this aspect and direct the Assessing Officer to delete the said addition. 6.1 Similarly, with regard to the two concerns of Isheta Investment Pvt. Ltd. and Sukarma Investment Pvt. Ltd., minor differences of ₹ 10,000/- and ₹ 1,000/- respectively were noticed. The assessee had furnished the respective invoices raised and the amount received from the said parties, corresponding to the profession receipts accounted for in the books of account and contended that the differences are only on account of punching error in the ETDS return filed by the clients. On this aspect also we find that the assessee has discharged his burden and in the absence of any cogent material with the Revenue the explanation has been unjustifiably rejected. On this aspect also we set aside the order of CIT(A) and direct the Assessing Officer to delete the respective additions. 6.2 Furthermore, with regard to the difference noticed in relation to Mafatlal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 140A has to be adjusted first is required to be computed with respect to the returned income as the assessed tax for the purposes of section 140A has been defined to mean tax on the total income declared in the return as reduced by the amount of tax deducted/collected at source, etc. 7.1 On this aspect, Ld. Representative for the assessee has pointed out that identical controversy has been considered by the Tribunal in the assessee s own case for A.Y 2000-01 and 2001-02 vide ITA NO.7450/Mum/2004 dated 21/5/2010 and the stand of the assessee has been approved. Following discussion in the order of the Tribunal dated 21/5/2010 is relevant:- 3.6.2. We have heard both parties perused the records and considered the matter carefully. The factual and legal background relating to the issue has already beendiscussed in the preceding para. The 140A provides that in case payment made under the said section falls short of the tax payable including interest under the said section falls short of the tax payable including interest under the said section then the tax so paid shall be first attributed towards the interest and the balance amount shall be adjusted against the tax pay ..... X X X X Extracts X X X X X X X X Extracts X X X X
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