Case Law Details
ACIT Vs. Rajiv Nayar (ITAT Delhi)
The brief facts of the case are that appellant is a senior Advocate of Hon’ble Delhi High Court. He filed his return of income on 30.07.2009 at Rs. 10,77,55,060/-. During the course of assessment proceedings it was found by the ld AO that the TDS certificates shows higher gross receipts then what is shown in the return of income and profit and loss account. Because of the difference in the gross receipt between the two documents the Ld. Assessing Officer made an addition of Rs. 3,57,87,719/- which was deleted by the Ld. CIT (A) holding that there is no justification for making the above addition. This is challenged by the revenue by ground No.1 of the appeal.
Before us the ld AR has shown that assessee has already offered the income on gross turnover of Rs. 14.76 crores following cash system of accounting. According to the method of accounting if the tax deduction at source has been made by the client on or before 31st March but payment is not received till that date, tax deducted at source is included in the income by the assessee. Therefore, according to the method of accounting followed by the assessee, we do not find any infirmity in the order of the ld CT (A) in deleting the addition. Hence, the addition made by the Ld. Assessing Officer of Rs. 3.78 crores is under the accounting treatment incorrect understood by the Assessing Officer. In view of this the ground No. 1 and 2 of the appeal of revenue are dismissed.
FULL TEXT OF THE ITAT ORDER IS AS FOLLOWS:-
1. This appeal is filed by Ld. Assistant Commissioner of Income Tax, Circle-37 (1), New Delhi [The ld AO] against the order of the CIT (Appeals) – XXVI, New Delhi [ the Ld CIT (A)] dated 21.10.2013.
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