S Ganesh Vs ACIT (ITAT Mumbai)
The Bombay High Court dismissed the Revenue’s appeal after holding that the Income Tax Appellate Tribunal had committed no error of law or perversity in partly allowing the assessee’s appeal. The dispute related to the addition of Rs. 47,37,000 made by the Assessing Officer on account of non-reconciliation of professional receipts with TDS certificates.
The Tribunal had examined the submissions of both parties and noted that the assessee was engaged as an Advocate, who typically argued matters through Advocates-on-Record or instructing Advocates, rather than being directly engaged by clients. According to the assessee, professional fees were received in different ways, including directly from clients, instructing Advocates, or Chartered Accountants who had collected the amounts from clients. Because of this practice, the assessee explained that it was not possible to provide the detailed break-up of all payments sought by the Revenue.
The High Court observed that the same explanation had been accepted in the past, including for Assessment Year 2006-07, and the Tribunal had accepted it again in the peculiar facts of the case. The Court found no reason to interfere with the Tribunal’s findings and held that the appeal did not give rise to any substantial question of law.
