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TMI Blog2022 (3) TMI 135X X X X Extracts X X X X X X X X Extracts X X X X ..... me - CIT-A deleted the addition - HELD THAT:-We find that the Ld. CIT(A) has duly considered all the facts on record including correspondences from various parties who have made payments to the assessee on account of works carried out during the year. In the case of HCC Ltd., the said company has given contradictory replies which cannot be treated as reliable. Ld. CIT(A) also noted that the payment has been received from HCC Ltd. By referring to the payment memo of HCC Ltd. which demonstrates the payment by HCC in excess payment than reported by HCC Ltd. In response to reply filed to notice issued u/s 133(6) of the Act. Therefore, the revenue reported by the assessee cannot be treated as unexplained revenue on the basis incorrect and contradictory evidences filed by HCC Ltd. CIT(A) noted that the assessee has accounted for the revenue which inter alia included security deposit also. Similarly the assessee has received payments which have been duly accounted for and a finding of facts has been given by the ld CIT(A) to thus effect. Besides the assessee has reported a receipts as revenue arising from small works contracts which were not liable for deduction of tax at source u/s 194C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee filed the return of income on 26.09.2010 declaring income of ₹ 3,96,310/- which was wrongly sated by the AO in the assessment order as ₹ 18,51,900/-. The return of the assessee was processed u/s 143(1) of the Act and income as per the intimation u/s 143(1) under the head business or Profession was taken at ₹ 18,51,900/-. This has resulted by reason of the fact that depreciation claim of the assessee of ₹ 14,55,585/- got rejected while processing was done. Thereafter, the case was selected for scrutiny and the assessment was framed u/s 143(3) vide order dated 28.03.2013 assessee's income at ₹ 20,01,900/-. We note that on the first page of the assessment order, the AO has stated that assessee filed the return of income showing the total income of ₹ 18,51,900/- which is wrong and against the facts on record. The assessee also filed a rectification application u/s 154 of the Act dated 05.05.2016 requesting the AO to rectify the amount of income declared in the return of income which was wrongly mentioned as ₹ 18,51,900/- instead of ₹ 3,96,310/-. Thereafter the PCIT exercising the revisionary jurisdiction u/s 263 of the Act revis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e AO to rectify the mistake which has resulted from denial of depreciation of ₹ 14,55,585/- to the assessee. We also note that the AO while passing the original assessment as well as assessment in the set aside proceedings has taken wrong figure of total income declared as per return of income filed on 25.09.2010 i.e. ₹ 18,51,900/- as against the correct figure of ₹ 3,96,310/-. In view of this, we do not find any infirmity in the order of CIT and accordingly same is hereby upheld by dismissing ground no. 1 of the revenue's appeal. 5. The issue raised in ground no. 2 is against the deleting the addition of ₹ 60,54,990/- by CIT(A) as made by the AO on account of unexplained revenue receipts. 6. The facts in brief are that the AO during the course of assessment proceedings found that the assessee has introduced cash out of undisclosed source of income in the guise of business income, the AO compiled the details of cash from the reply received to notice issued u/s 133(6) of the Act at the time of original assessment and also in the set aside assessment as per the details given hereunder: "Revenue as per audited Balance Sheet ₹ 3,35,32,600/- Less: Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y them in the subsequent year and thus the difference the revenue recorded vis-a-vis the appellant. The appellant has clarified the difference between the revenue recorded by him and as reported by the concerned parties through documents and reconciliation as well as TDS certificate which is a part of the submission of the appellant. It appears that the appellant has accounted for revenues net of departmental deduction which in the instant case involved retention of security deposit which has wrongfully been claimed by the appellant amounting to ₹ 10,56,727/-. The same has been added by the AO rightfully and in respect thereto the appellant has not raised any ground and thus no separate adjudication is required in this regard. Further in the case of RW division Jaleswar, no inconsistency is being reported anywhere and hence the same is uniformly accepted. Further the appellant has reported a sum of ₹ 15,96,701/- as revenues realized from small contracts from small parties and owing to inapplicability of Sec. 194C the same have not featured in the 26AS of the appellant. It is an admitted fact that not all revenues are reportable under 26AS as it caters to quantum involvi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... can be drawn. The Ld. CIT(A) ,however, estimated the profit @ 8% on small contracts of ₹ 15,96,701/- as suppression of profit cannot be ruled out and thus sustained the addition to the tune of ₹ 1,27,736/-. Taking all these facts into consideration in totality, we do not find any infirmity in the order of the Ld. CIT(A) and accordingly the same is upheld by dismissing ground no. 2 of the revenue. 9. The issue raised in ground no. 3 is against the deletion of addition of ₹ 1,22,73,108/- by the Ld. CIT(A) as made by the AO under the head undisclosed bills receivable during the year. 10. The facts in brief are that the AO has calculated the amount of undisclosed receivable of ₹ 1,22,73,108/- on the basis of replies received from three parties detailed herein given as under: Name of the party Opening Balance Work Done Payments Closing Balance HCC 5021891 1600000 3421891 Coal Mines 113837 300202 300202 113837 OCC 8494332 21134529 20891481 8737389 Total 12273117 Reported by AO (error in point 11.1) 12273108 11. On the above basis, the Ld. AO made an addition of ₹ 1,22,73,108/- on account of undisclosed receivab ..... X X X X Extracts X X X X X X X X Extracts X X X X
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