9911796707
Advanced Search 
TMI Blog2023 (3) TMI 1087X X X X Extracts X X X X X X X X Extracts X X X X ..... ls and other documents of the clients to prove that reimbursement expenses credited in the books of the assessee were not his own income and were attributed only to the clients. 1.3 CIT(A) failed lo consider the fact that the details/materials furnished by the assessee during the appellate proceedings to substantiate its claim were not produced before the AO during the course of assessment proceedings 1.4 The CIT(A) omitted to call for remand report u/r.46A, when the assessee furnished any details/fresh evidence in support of its claim during the appellate proceedings, on which the CIT(A) relied on the same and allowed the ground of 1.5 The CIT(A) erred in relying the decision of Hon'ble jurisdiction High court in the case of Commissioner of Service tax Vs Mis Sangamitra Services Agency, which is rendered for service tax purpose to ascertain turnover component when there had been receipt of commission/remuneration in the case of C&F agency which is factually distinguishable to the facts of the assessee's case. the assessee. For these and other grounds that may be adduced at the time of hearing, it is prayed that the Order of the learned Commissioner of Income Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... after considering relevant submissions of the assessee and also taken note of various evidences filed by the assessee, deleted additions made by the AO by holding that the assessee could able to explain difference between gross receipts as per Form no. 26AS and gross receipts in its books of accounts and such difference are on account of reimbursement of expenses, on which TDS has been deducted by the clients. The relevant findings of the CIT(A) are as under: "7.14 In the appellant's case It a ears that _the entire confusion has started from the fact that the principals have deducted tax at source In res etc of the reimbursement made, as a matter of abundant caution. For a better understanding of the case, the Service Tax returns of the appellant were called for. These returns have a significant bearing on the Issue at hand since the appellants income on the services it is rendering as a C&F are subject to Service Tax. 7.14.1 A reconciliation table of the profit/loss account Vs Service lax return for the F.Y.2015-16 is also reproduced below-: Profit and loss account vs service tax return reconciliation for the Financial year 2015-16: Particulars Apr'15- Jun'15 Julu'15 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not income" is therefore squarely applicable to the facts of this case. 7.15.3 As has already been laid down by the Hon'ble Jurisdiction High Court in,the case of Commissioner of Service Tax Vs M/s. Sangamitra Services Agency cited supra in paras 8.4 & 8.5 reimbursements made to a C&F agency will not form a component of the taxable turnover valuation, which is to be restricted to only commission or remuneration received. 7 .15.4 In the light of the detailed discussion made above, the AO is hereby directed to delete the impugned addition made amounting to Rs.5,22,80,480/- and to grant relief to the appellant accordingly." 5. The Ld. DR submitted that the Ld. CIT(A) has erred in deleting additions made towards difference in gross receipts as per Form no. 26AS and books of accounts of the assessee, on the basis of certain additional evidence, without confronting those evidences to the Assessing Officer for its comments and rebuttal. The Ld. DR further submitted that, although the assessee claims to have reconciled difference between gross receipts as per books of accounts and gross receipts as per Form no. 26AS, but the assessee could not file necessary evidences including ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the same will be reimbursed by the clients against invoices/debit notes. In this case also, the assessee has incurred various expenses on behalf of their clients and while billing to their clients for services rendered, a separate bill/debit note has been issued to recover various expenses incurred on behalf of their clients. The assessee in its books of accounts has accounted services charges/commission received from their clients for rendering C&F agent service as their income, but reimbursement of expenses has been squared off in the parties account. On the other hand, the clients have deducted TDS on total payments made to the assessee including reimbursement of expenses. Thus, obviously there will be a difference between total payments made by the clients and TDS deducted thereon as per Form no. 26AS and gross receipts booked by the assessee in their books of accounts. The AO has noted difference of Rs. 5,22,80,480/- in gross receipts as per books of accounts of the assessee and gross receipts as per Form no. 26AS. The assessee has explained difference between gross receipts and claimed that said difference is on account of reimbursement of expenses. The assessee had filed r ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
