9911796707
TMI Blog2012 (2) TMI 632X X X X Extracts X X X X X X X X Extracts X X X X ..... f. 3. In this case assessee is engaged in the business of profession of Chartered Accountancy. The assessee firm filed the return of income electronically on 30.3.2009 declaring taxable income of Rs. 53,620/-. The return was assessed under section 143(1). Thereafter the case was selected for scrutiny and assessment was completed u/s. 143(3) on 1.2.2010 on total enhanced income of Rs. 4,13,780/- after making certain additions of Rs. 3,60,160/-. Besides above addition the Assessing Officer has withdrawn the claim of TDS of Rs. 99,532/- in accordance with the provisions of Section 199. In this case Assessing Officer noted that assessee failed to furnish evidence regarding receipt of fees during the assessment year under consideration in cases ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 429/- and credit for TDS amounting to Rs. 99,532/- was withdrawn. 4. Against the above order the assessee appealed before the Ld. Commissioner of Income Tax (A). Assessee submitted that assessee is following cash system of accounting regularly and consistently since 30 years. The deductor's who generally follows mercantile system of accounting, make provision for liability towards auditor's remuneration at the year end and deduct tax thereon in accordance with the provision of Section 194J of the I.T. Act, 1961 and the tax so deducted is deposited with appropriate authorities. It was further submitted that under the cash system of accounting, the income relates to actual receipts. In other words, fees received and credited to the cash / ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessing Officer and sustain the disallowance. 5. Against the above order the assessee is in appeal before me. 6. I have heard the rival contentions in light of the material produced and precedent relied upon. In this case the assessee is a firm of Chartered Accountants. On a fee of Rs. 1017843/- a sum of Rs. 110961/- was deducted by various parties. The deduction as on 31.3.2008 amounting to Rs. 110961/- was claimed by the assessee as fee received. Accordingly, the assessee claimed benefit of TDS. The fee of Rs. 1017843/- was not accounted for by the assessee as the same was not received upto 31.3.1998. The explanation for this was that the parties follow mercantile system of accounting. They make provision for the audit fee payable as o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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