Case Law Details
ACE Build Tech Vs ACIT (ITAT Delhi)
ITAT Delhi held that addition merely on the sole basis that there was mismatch between TDS certificate/26AS and the turnover/receipts shown by the assessee in its P&L account unsustainable as difference successfully established.
Facts- The assessee is a contractor and during the course of assessment proceedings the Assessing Officer noted a difference of Rs. 73,04,678/- on account of mismatch in the contract receipts as per books of accounts and as per 26AS and this Assessing Officer alleged understatement of receipts from five entities and made addition on the basis of presumptions without any cogent positive and adverse material establishing actual understatement of receipts/turnover by the assessee.
CIT(A) dismissed the appeal. Being aggrieved, the present appeal is filed.
Conclusion- Held that only because there was mismatch between TDS certificate/26AS and the turnover/receipts shown by the assessee in its P&L account cannot be a sole basis for making addition in hands of assessee to bring the difference to tax. In the present case, the assessee during remand proceedings as well as before ld. CIT(A) successfully demonstrated, by way of sustainable explanation supported by documentary evidence including reconciliation statement and certificate issued by the contractee certifying the payments of WCT etc. by them, then it has to be held that the assessee has successfully established that the mismatch was occurred due to inclusion of WCT/VAT/Service Tax in the bills and factum of deduction of TDS on the total bill amount. The assessee also demonstrated that the WCT etc were paid directly by the contractees and assessee was given certificates by the contractees certifying the fact of payment of WCT etc. by them. Therefore we conclude that the ld. CIT(A) findings recorded by him are perverse and thus he was not correct and justified in confirming the addition. We therefore, direct the Assessing Officer to delete the same.
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