TaxTMI 
TaxTMI 
2010 (2) TMI 930
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....ges initiation of reassessment under section 147 of the Act. The appeal by the Revenue is against the deletion of addition of Rs. 63,76,387 made by the Assessing Officer on account of difference in gross receipts as per the TDS certificate and that shown in the profit and loss account. 3. The assessee filed its return of income declaring total income of Rs. 4,86,770. The same was accepted under section 143(1)(a) of the Act. The assessee is carrying on the business of forwarding and clearing agent. The Assessing Officer noted that total contract receipts as per TDS certificate amounted to Rs. 2,48,60,944 whereas the same as per the profit and loss account they were Rs. 1,84,84,557. Noticing this discrepancy as pointed out by the audit obj....
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....s to be on the basis of subjective satisfaction of the Assessing Officer This condition is found satisfied in the present case and hence the re-assessment proceeding is valid. 6. We have considered the rival submissions. We are in agreement with the submission of the learned Departmental representative. The Assessing Officer had specific information that though the claim to credit for TDS is much more, a corresponding amount is not found credited in the profit and loss account. In view of the specific information the Assessing Officer rightly assumed jurisdiction for framing reassessment. The case laws relied upon by learned counsel are distinguishable on facts. In the case of Batra Bhatta Co. (supra), the reasons recorded revealed that ....
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....ort and export was the expenditure which was to be borne by the client. The actual freight charged by the shipping company or the concerned airlines was recovered from the client along with the services charges for which bill was raised. As per the accounting procedure regularly followed the service charges/commission was shown as income of the appellant in the profit and loss account. Since the freight receipt from the client was not income of the appellant but was payable on his behalf to the shipping company, it was credited to separate account and the payment made for freight, etc. was debited to that account. However, since the customer making the gross payment including sea/air freight, TDS was deducted on whole amount and not merely ....
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....er information available to the Commissioner (Appeals), he held as under : "3.4 I have carefully considered the submissions made on behalf of appellant. The appellant has duly explained the accounting procedure followed by it regularly wherein the freight receipt paid separately accounted for without routing through the profit and loss account. However since the customers made gross payment including the freight to be passed on to shipping company/airlines the TDS was deducted of the said gross amount. This was the reason for difference in the gross amount as per TDS certificate and what was shown in profit and loss account. The explanation submitted the quite reasonable and logical. In fact from the discussion in the assessment order it....
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....own in the profit and loss account was incorrect on facts. The receipt shown in the profit and loss account are net receipt as per regular accounting procedure followed by the appellant. In view of this the figures as per the TDS certificate and those in the profit and loss account have been duly reconciled by the appellant. There does not remain any doubt about the genuineness of explanation. Hence the addition of Rs. 63,76,387 is without any basis and deleted." 9. Whereas the learned Departmental representative Shri Vivek Kumar sought to rely upon the finding of the Assessing Officer, learned counsel for the assessee Dr. Rakesh Gupta reiterated the submissions made before the Commissioner (Appeals) and his finding thereon. 10. We ha....