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TMI Blog2018 (3) TMI 131X X X X Extracts X X X X X X X X Extracts X X X X ..... e books of accounts then, even the contention of the assessee that only net profit of these contract receipt can be added to the income of the assessee is not acceptable. - Decided against assessee. - ITA No. 300/JP/2016 - - - Dated:- 20-12-2017 - SHRI VIJAY PAL RAO, JUDICIAL MEMBER For The Assessee : Shri S. K. Gogra (C.A.) For The Revenue : Shri R.A. Verma (Addl. CIT) ORDER PER: VIJAY PAL RAO, J.M. This appeal by the assessee is directed against the order dated 19.01.2016 of CIT(A), Jaipur for the assessment year 2009-10. The Assessee has raised various grounds in this appeal however, only effective ground is ground no. 1 of the assessee s appeal and all other grounds raised by the assessee are submissions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... declared by the assessee and contract receipts appearing in 26AS of ₹ 24,96,557/- was proposed to be added to the income of the assessee. In response the assessee submitted that as per Form No. 16A issued by Shri Bhawani Niketan Shiksha Samiti, Jaipur total contract receipts are shown at ₹ 5,19,09,588/- and the same has been considered as gross contract receipts in the audited trading account. Subsequently an amount of ₹ 24,96,557/- was added by Shri Bhawani Singh Shiksha Samiti, Jaipur through a TDS return and due to this total contract receipts in 26AS are appearing at ₹ 5,44,06,145/-. The assessee though submitted that instead of adding entire amount of ₹ 24,96,557/- an amount of ₹ 4,46,909/- being net ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n support of the contention which was admitted by the ld. CIT(A) and forwarded to the AO for submissions of remand report. The remand proceedings the assessee took the stand that the difference of ₹ 24,96,557/- was on account of book adjustment of the expenses and deductions made by the deductee. The assessee gave the details of sales tax deducted by the deductee of ₹ 8,15,095/-, interest expenses charge of ₹ 8,37,569/- and direct purchase of material by the deductee of ₹ 8,43,893/- total of three items matching with the difference of ₹ 24,96,557/-. The assessee further contended that all these expenses are legitimate business expenses which could not be charged to profit and loss account due to book adjustment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e allowed. Therefore, even if the contract receipts are not disclosed only net profit in these undisclosed receipts can be added to the income of the assessee. 4. On the other hand, ld. DR has referred to the finding of the ld. CIT(A) and submitted that the assessee claimed that the difference is due to the books adjustment made by Shri Bhawani Niketan Shiksha Samiti, Jaipur on account of direct purchase, interest deduction and sales tax deduction therefore, as per the assessee there is no income on account of this differential amount when the equal amount allowed as an expenditure against the said receipts. However, it was found that all these expenditure have been took in profit and loss account. He has relied upon the order of the aut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (WCT) deducted by Awarder 8,15,095.00 ( b) Interest expenses charges by Awarder 8,37,569.00 ( c) Direct purchase of material by Awarder 8,43,893.00 ( on account of Contractor assessee) ---------------------- Total 24,96,557/- The assessee also filed additional evidence in support of the contention which were forwarded to the AO for the remand report. After considering the remand report the ld. CIT(A) adjudicated the issue in paras (x) to (xv) as under:- ( x) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purchase by the Awarder i.e. Shri Bhawani Niketan Shiksha Samiti. (xii) It is interesting to note from the copy of ledger account of Works Contracts Receipt filed by the appellate with its appeal that it has shown total receipts at ₹ 5,44,06,345/-. As the appellant is following mercantile system of accounting, it should have taken the amount of ₹ 5,44,06,345/- on the basis of its books of accounts whereas it has taken the contract receipts at ₹ 5,19,09,557/- in its audited Profit and Loss account. ( xiii) it is further noted from Sales Tax (WCT) A/c ledger account filed by the appellant with its appeal that a sum of ₹ 8,15,095/- was debited in this account. Similarly Interest Exp. Ledger account shows deb ..... X X X X Extracts X X X X X X X X Extracts X X X X
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