PCIT Vs MBC Infra Space Pvt. Ltd. (Gujarat High Court)
The Gujarat High Court dismissed the Revenue’s appeal filed under Section 260A of the Income Tax Act, 1961, challenging the order of the Income Tax Appellate Tribunal for Assessment Year 2013-14. The dispute arose from the deletion of an addition of Rs. 3,74,27,513 made by the Assessing Officer on account of the difference between payments reflected in Form 26AS and the assessee’s books of account. The original assessment under Section 143(3) had also included a disallowance relating to employees’ contribution towards PF. However, the Commissioner (Appeals) deleted the addition relating to the Form 26AS discrepancy, and the Tribunal subsequently upheld that decision.
The Revenue contended that the assessee had received contractual payments from two parties on which tax had been deducted at source, but the corresponding receipts had not been fully disclosed in the return of income. During the assessment and appellate proceedings, the assessee explained that there had been double deduction of TDS on the same project, once at the time of raising bills and again at the time of payment on certain bills. The Revenue argued that the Assessing Officer had correctly made the addition and that the Tribunal had failed to appreciate the facts properly.
