Case Law Details
DCIT Vs Sheth & Sura Engineers Private Ltd. (ITAT Pune)
It is an undisputed fact that the entire turnover of the assessee is exclusively from Government Department and the said turnover has not been disputed by the Assessing Officer. The Assessing Officer has also not considered the debtors of other divisions and only considered debtors of contracting division. It has been brought on facts that as a matter of practice, no Government Department issues any confirmation, an issue which has been raised by the Assessing Officer. The Assessing Officer has just made an estimated calculation and actual figures of various deductions such as TDS, Works contract Tax, Security deposit, royalty, Secured Advances (EMD), and Retention money has not been considered. These facts were not refuted by the Ld. DR at the time of hearing. The Assessing Officer resorted to some strange calculation finding out mismatch in the account of sundry debtors in view of the accounts derived at for the subsequent assessment year. When the Assessing Officer is accepting the turnover, sales are not disputed and the Assessing Officer has also not considered the actual figure of various deductions as afore-stated, in such scenario, we are of the considered view that the Ld. CIT(Appeals) was correct in deleting the addition on this issue. In view of the same addition made by AO could not be sustained.
FULL TEXT OF THE ITAT JUDGEMENT
This appeal preferred by the Revenue emanates from the order of the Ld. CIT(Appeals)-2, Pune dated 05.01.2016 for the assessment year 2010-11 as per the following grounds of appeal on record:
“1. Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) is correct in deleting the additions made by the AO on account of suppression of debtors amounting to Rs.8,32,44,990/- without proper explanation/reconciliation?
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