Case Law Details
Mediserv House of Prof. Usha Singh Vs ITO (ITAT Kolkata)
ITAT Kolkata held that addition towards difference between figure of gross receipts reported and figure reported in Form 26AS is unsustainable as the difference is merely because figure reported in Form 26AS was inclusive of service tax component.
Facts- Assessee is a partnership firm and filed its return reporting total income at Rs.6,94,540/-. In the course of assessment, Ld. AO noted that assessee has shown gross receipts of Rs.39,09,400/- as against gross receipts reflected in Form 26AS of Rs.43,03,044/-. On account of this difference of Rs.3,93,644/-, ld. AO called for explanation from the assessee. Not convinced by the submissions, Ld. AO completed the assessment by making addition of this difference of Rs.3,94,644/- by treating it as undisclosed gross receipt. Aggrieved, assessee went in appeal before the ld. CIT(A) who dismissed the same.
Conclusion- We have heard the rival contentions and perused the material available on record. The fact as reproduced above in respect of gross receipts towards service charges and the component of service tax are undisputed. Addition made by the Ld. AO is on account of difference between the figure of gross receipts reported by the assessee which is including the service tax component whereas the figure reported in Form 26AS is inclusive of the service tax component which has been adequately reconciled by the assessee from the charts reproduced above. From the above factual matrix, we find that the addition made by the Ld. AO on account of difference of Rs.3,94,644/- between the two above stated figures by treating it as undisclosed gross receipt is not tenable. Accordingly, the addition so made is deleted. The grounds taken by the assessee in this respect are allowed.
FULL TEXT OF THE ORDER OF ITAT KOLKATA
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