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of <h1>Appeal by Chartered Accountants firm remanded for re-verification by ITAT</h1> <h3>JCR & Co., Chartered Accountants Versus ACIT 11(2), Mumbai</h3> JCR & Co., Chartered Accountants Versus ACIT 11(2), Mumbai - TMI Issues:1. Addition of unreconciled amount as income.2. Declining credit of TDS amount.3. Addition of understated interest income on fixed deposits.4. Disallowance of remuneration to partners.Analysis:Issue 1: Addition of unreconciled amount as incomeThe assessee, a firm of Chartered Accountants, challenged the addition of Rs.3,13,389, including an enhancement of Rs.31,921, based on the difference between income returned and data from AIR. The CIT(A) observed discrepancies in TDS claims and directed to treat Rs.31,921 as income. ITAT noted the cash system accounting of the assessee and ordered re-verification by the AO, directing submission of reconciliation statements for unreconciled receipts. Ground No.1 allowed for statistical purposes.Issue 2: Declining credit of TDS amountThe AO declined credit of TDS amounting to Rs.28,493, based on Form 26AS. ITAT ordered re-verification by the AO, directing confirmation of TDS amount as income and allowing credit based on Form 26AS. Ground No.2 allowed for statistical purposes.Issue 3: Addition of understated interest income on fixed depositsThe AO added Rs.21,009 as understated interest income based on AIR information. The CIT(A) upheld the addition. ITAT ordered re-verification by the AO, directing verification of actual interest paid by banks. Ground No.3 allowed for statistical purposes.Issue 4: Disallowance of remuneration to partnersThe AO disallowed Rs.31,852 from remuneration to partners, excluding certain incomes from book profits. The CIT(A) confirmed the disallowance. ITAT ordered re-verification by the AO, directing examination of capital gains and treatment of interest on fixed deposits. Ground No.4 allowed for statistical purposes.In conclusion, the appeal of the assessee was allowed for statistical purposes, with various issues being remanded back to the AO for re-verification and necessary actions.
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