No addition can be made for the difference in the receipts as per TDS certificate and as per the books of account when the difference is on account of service tax

ACIT Vs M/s Hari Machines Ltd (ITAT Delhi)  -Service tax is a recovery on behalf of the company and it has been paid to Government account. Element of service tax cannot be treated as income of the assessee.

Assessee is entitled to depreciation u/s 32 on the equipment purchased during the impugned year once a government authority inspecting the equipment, certifies the date of power supply to the equipments and after inspection has permitted energisation of the equipment. 

A finding of fact has been recorded by ld. CIT(A) that so as it relates to depreciation relating to Plate Bending Machine, 50 Ton Cranes and electrical installations, the user of these assets is backed by the report of electrical inspector who is a Government Authority authorize to inspect the equipment and to grant certificate regarding energisation of those assets. It has not been shown by the revenue that these findings recorded by ld. CIT(A) are contrary to the facts existing on record. Therefore, we decline to interfere in the relief given by CIT(A) and this ground of the revenue is dismissed.

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1. Without rejecting books of account regularly maintained, addition cannot be made only on basis of DVO’s report
2. When the assessee fails to rebut the unexplained investment in the purchase of fuits, and the CIT(A) and Tribunal fail to record the fact that such entries were made in the books, the addition made by the AO is sustainable
3. When assessee fails to rebut the addition made by the AO in respect of undisclosed income found during the search and also chooses not to file appeal against the huge quantum addition, penalty is warranted in such circumstances
4. A low rate of gross profit, in absence of any material pointing towards falsehood of accounts books, cannot by itself be a ground to reject account books under section 145(3)
5. No addition could be made in re-assessment if no additions in respect of the grounds on which the proceedings u/s 147 were initiated had been made by the A.O