TaxTMI 
TaxTMI 
2012 (9) TMI 617
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.... Rs.4,57,092. A search and seizure operation u/s 132 of the Income Tax Act., 1961, was carried out in the business and residential premises of the appellant on 26.06.2008. In response to notice u/s 153A of the Income Tax Act., 1961, the return for the aforesaid year was filed on 01.01.2009 disclosing the equivalent amount as shown in the original return filed u/s 139 of the Income Tax Act.,1961. While completing the assessment the AO made addition of Rs. 36,33,642 being the difference between the amount mentioned in the TDS Certificates and that shown as income inter alia with the following reason I) No evidence has been produced in support of the contention of the assessee that she had made payments of railway freight on behalf of MIs. Phulchand Export Ltd. Deduction of tax at source u/s. 194C by M/s. Phulchand Export Ltd. itself clearly contradicts the contention of the assessee that the discrepancy represents freight charges reimbursed by that company. ii) The assessee has filed a copy of the ledger account of MIs. Phulchand Export Ltd. in her ledger wherein there are certain debits on account of railway freight to the company. This ledger copy is merely a selfserving evidence....
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.... to the P&L A/c. Section 199 provides that any deduction made with the provisions of Chapter-X VII and paid to the Central Government shall be treated as a payment of tax on behalf of the person from whose income the deduction was made and credit shall be given to him for the amount so deducted on the production of the certificate furnished u/s.203 in the assessment made for the assessment year for which such income is assessable. A perusal of the written submission filed by the AR before the AO on 28.12.2010 clearly shows that reliance was placed by him on ledger copy of the party and freight paid. There is merit in the finding of the AO that the ledger copy is merely a self-serving evidence, especially when no confirmation of accounts could be filed from M/s. Phuichand Exports Ltd. In CIT v. Calcutta Agency Ltd. (1951) 19 ITR 191 (SC), it was held that the burden of proving the necessary fact in order to entitle the assessee to claim exemption was on the assessee. The Delhi Bench of the Hon'ble ITAT in ITO V. Dr. Willmar Schwabe India (P) Ltd. (2005) 3 SOT 71 examined the scope of Circular No.715 dated 08.08.1995 on the subject of deduction of tax at source on ex....
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....lso produced the books of accounts wherein the above expenditure incurred on behalf of the party was not found to be claimed. He submitted that if the above reimbursement of expenditure is considered as income then both the A.O. and learned CIT(A) should have given benefit for expenditure incurred. Further, it was submitted that the reimbursement of expenditure was Rs. 35,00,387 whereas the difference between the income shown and total amount on which TDS made was Rs.36,33,642 (Rs.99,63,131-63,29,489) was because of TDS being made on payment as well as the outstanding last bill. The assessee has enclosed the account statement received from M/S Phulchand Exports (P) Ltd. in the paper book at page no. 18 & 19. From the enclosed statement of account, the Hon'ble Bench will notice that the TDS has been made on total payment of Rs. 66.00 lacs made during the year and on one bill of Rs. 14,87,065. The same is also evident from TDS Certificates, copies of which are enclosed in the paper book at page no. 31 & 32 respectively. As against which total credit during the year was Rs. 79,47,310 resulting a difference of Rs. 1,33,256 (Rs.66,00,000+Rs.14,80,566 - Rs.79,47,310). The learned AR of t....
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....ed which balance finally finds as balance in the balance sheet when the certificate was obtained only to satisfy the anxiety of the Assessing Officer. The learned CIT(A) therefore erred in dismissing the assessee's appeal without reasoning of the facts as otherwise lean in favour of the assessee. 7. The learned CIT-DR submitted that the endeavor of the Assessing Officer was to reconcile the tax deducted at source claimed by the assessee in the income returned by the assessee on the basis of gross receipt incorporated in the accounts. The Assessing Officer therefore rightly held the sum of Rs. 36,33,642 were receipts not disclosed in the Profit & Loss account was to be considered for taxation when he chose to give credit of TDS amounting to Rs. 2,23,572. The bills raised by the assessee which was subjected to TDS did not tally with the receipts shown was rightly confirmed by the learned CIT(A). He supported the orders of the authorities below indicating the computer granting credit on the basis TDS certificate is returned by the deductor as form 26-AS which was on the basis of receipts found at the time of hearing not tallying with the receipts disclosed. He prayed that the orders ....