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TMI Blog2016 (6) TMI 119X X X X Extracts X X X X X X X X Extracts X X X X ..... in the audited P&L account the assessee has included both income and expenditure and to decide the issue afresh. - Decided in favour of revenue for statistical purposes. Accrual of income - Income accounted for in the next financial year - Held that:- The amount of ₹ 4,11,234/- was deleted by CIT(A) on the plea that this income pertains to the bills raised by the assessee in the month of March, which has been taken by the assessee as its income in its account in the month of April, 2008. However, nothing was placed on record by the assessee to justify CIT(A)’s conclusion that this income was accounted for in the next financial year. In the interest of justice, we restore this amount of ₹ 4,11,234/- to the file of AO to verify as to whether the assessee has accounted for this income in the subsequent year, so as to justify its of not including the same in the year under consideration. Decided in favour of revenue for statistical purposes. - ITA No.3241/Mum/2012 - - - Dated:- 27-4-2016 - SHRI R.C.SHARMA, AM AND SHRI AMIT SHUKLA, JM For The Revenue : Shri Yogesh Kamat For The Assessee : Shri Hari S. Raheja ORDER PER R.C.SHARMA (A.M): This is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s bank account and ledger extracts to prove that the entire transaction is properly accounted. The appellant has also filed the copy of Tax Audit Report before the Assessing Officer. 2.8 The appellant has also filed Income Expenditure Alc which is available in Exhibit -3 of the paper book. As per the p/l account submitted along with the return of income the assessee has shown 19,79,693 towards service charges received and the service tax collected. The break up of the same is available in this exhibit. The details are as follows: Service Charge Service Tax Total The amount collected from M/s Anandji co 7,42,816 4,06,551 11,49,367 The amount collected from M/s Century Textile Mills Industries ltd. 3,22,217 5,08,103 8,30,320 19,79,697 2.9 The above income admitted by the appellant includes the income out of labour charges received and paid o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssion of ₹ 500/- per truck. Therefore, the facts have revealed that the TDS was deducted on the whole amount of freight on trucks supplied through assessee but said amount had an over-riding right of the Truck-owners therefore directly diverted to their respective accounts. On careful examination of the statutory provisions to answer this legal question, it is evident that the deduction of tax at source is not a levy of tax unless and until it is followed by an assessment order making a charge of tax. Even this is also a settled position that the deduction of tax at source in no way expressly indicates that ipso facto the assessee is entitled for the refund or adjustment of tax of the TDS amount against the income mentioned therein. The deduction of tax is not a levy of tax. Deduction of tax at source is merely one of the mode of collection of tax. The amount on which TDS is deducted is subject to charge as per the provisions of the Act. There are few instances which can further elaborate this view. For example, the recipient maintains account on cash basis which may not match with the amounts certified in the TDS Certificate due to the reason that the deductor has maintained ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers. On appreciation of the facts, the transaction in question had fallen in first category. In view of the above observation the ground of the Revenue has no legal stand, therefore, deserves to be rejected. Additionally, a decision of this coordinate Bench has also been cited in the case of Shushiladevi Anilkumar Singhal reported as (2008) 10 DTR (Ahd)(Trib) 558; relevant portion is reproduced below:- ... In our considered opinion, the provisions of deduction of TDS have been brought in the statute to facilitate the collection of tax. It is not the intention of the legislature that the credit for a portion of TDS deducted and paid is never granted. In the instant case, it is admitted by the Revenue that the amount. of the TDS covered by TDS certificates in question could not be granted to truck operators/owners as the relevant TDS certificates stand in the name of the assessee and not in their name. Thus, credit against the above TDS can be granted to the assessee alone. Further, the said TDS relates to the business transactions of the assessee of the year under appeal and the assessee has duly disclosed her income relating to the transactions represented by the said certifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... admitted the income on these transaction in the form of service charges for rendering the services, the Assessing Officer has no justification in adding the gross amount as income of the appellant. As mentioned above, all relevant documents in support of the assessee contention had been filed before the AO. It is within the knowledge of the AO that all these have been duly accounted in the books of account. 2.14 it is also to be noted that the Assessing Officer has never questioned the genuineness of the labour payments. As per the concept of real income what needs to be taxed is the actual income accrued to the appellant and not hypothetical income. In this case, the gross receipts as per the TDS certificate, added as income by the Assessing Officer is not a real income accrued to the appellant. To summarize: 1. Against the bills raised by the appellant, the above mentioned companies made payments by cheque which got deposited into assessee's bank account and subsequently paid in to-to towards wages labour charges. 2. Due entries made in the books of accounts 3. Tax Audit Report has been finalized and there is no adverse finding on this aspect. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s receivable and payable for March 2008 are not shown. Secondly is March 2008 wages are shown then March 2007 wages will have to be deducted. Thus the method of accounting adopted. by the concern does not require any adjustment. The passing remark made by the AO in this regard appears in page 2 of the assessment order and the same is reproduced below: As per the reconciliation given by the authorised representative of the assessee it is mentioned that 'the assessee has not included the payment received from M/s. Century Textile Mills of ₹ 9,00,000/- and M/s. Anandji Haridas Co. of ₹ 3, 92,498/- as they are shown in the next year. 2.18 The submission of the appellant makes it clear that the appellant has been consistently raising the bills for the month of March, on 5th to 7th of April of the subsequent F.Y and the same is accounted in the next FY. This method has been consistently followed by the assessee. The AO is directed not to disturb the same. The reconciliation statement also makes it clear that ₹ 9,00,000 is only an advance and ₹ 3,92498 is march bill accounted in the subsequent year. Since the difference has been clearly exp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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