2014 (3) TMI 1152 - HC - Income Tax

High Court upholds Tribunal decision on professional receipts non-reconciliation issue for Assessment Year 2006-07

Commissioner of Income Tax ­ 13 Versus Shri S. Ganesh

The High Court dismissed the appeal concerning the addition of professional receipts by the Assessing Officer due to non-reconciliation with TDS ... Non­-conciliation of professional receipts with TDS certificates - HELD THAT:- Tribunal considered this submission of both sides and found that the assessee was engaged as an Advocate to argue the matters by what is popularly known as Advocates on record or instructing Advocates method, meaning thereby the client does not engage the assessee directly but a professional or the Advocate engaged by the client requests the assessee to argue the case. Brief is then taken as the counsel brief. That being the practice, the assessee gave an explanation that the break­up as desired cannot be given and with regard to all payments. It is pointed out that at times, assessee receives fees directly from the clients or from the instructing Advocates or Chartered Accountants if such professionals have collected the amounts from the clients. Thus the break­up as desired cannot be placed on record. An explanation which has been given by the assessee and accepted in the past has been now accepted by the Tribunal once again. Since it is accepted for the Assessment Year 2006­-07, in the peculiar facts, in relation to the present assessee, we are of the view that this Appeal does not deserve to be entertained. No substantial question of law. Issues:1. Addition of professional receipts without reconciliation of TDS certificates.Analysis:Issue 1: Addition of professional receipts without reconciliation of TDS certificatesThe High Court, comprising S.C. Dharmadhikari and G.S. Kulkarni, JJ., heard arguments from both sides regarding the addition of Rs. 47,37,000 made by the Assessing Officer due to non-reconciliation of professional receipts with TDS certificates. The Tribunal found that the assessee, working as an Advocate, followed the practice of being engaged by professional or Advocate representing the client, and thus, the break-up of receipts as desired could not be provided. The Tribunal accepted the explanation given by the assessee, which had been accepted in the past as well. Considering the peculiar facts of the case and the acceptance of the explanation for the Assessment Year 2006-07, the High Court concluded that the appeal did not raise any substantial question of law and dismissed the appeal accordingly.Overall, the judgment focused on the specific practice followed by the assessee in receiving professional fees and the acceptance of the explanation provided, leading to the dismissal of the appeal in this matter.