2014 (7) TMI 301

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....he AO. 3. Briefly the facts are, the assessee is an individual and is the principal officer and Chairman-cum-Managing Director of the company M/s Country Club (India) Ltd., an Indian Company. For the AY under consideration, the assessee had filed his return of income on 08/12/2009 declaring total income of Rs. 1,96,98,000/-. During the scrutiny assessment proceeding, the AO noted that the assessee has received Rs. 88,25,304/- as rent from AP Beverages Corporation Ltd., on which, tax of Rs. 3,99,561/- was deducted at source. However, on examining the return of income filed by the assessee, the AO noted that the assessee has not offered the income of Rs. 88,25,304/- and has also not claimed TDS for the AY under consideration. When the AO c....

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....resent case also, liquor license was issued by the Prohibition and Excise Department in the name of Principal Officer of the company, i.e., present assessee. It was submitted that due to that reason only they collected TCS by indicating PAN of the assessee and that is how the name of the assessee is also indicated in Form No. 26AS filed by the company. It was submitted by the assessee that though TCS was collected in the name of the present assessee, however, the entire purchase and sale of liquor from AP Beverages Corporation Ltd. was accounted for in the books of account of the assessee company. Invoices from the AP Beverages Corporation Ltd. are also in the name of the company and not in the name of the assessee. It was submitted that th....

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.... the TCS on the payment received against the sale of liquor and credit of same was given to the appellant which is reflected in his Form 26AS. 4.3.2 During the scrutiny proceedings, the assessing officer had observed that the appellant had not disclosed the income received from AP Beveraqe Corporation Limited and accordingly made an addition of Rs. 88,25,314/- with an observation that the appellant had received Rs. 88,25,314 as rent from A.P Beverage Corporation Ltd. 4.3.3 At the outset, it is very much clear from the assessee's explanation/submission of the documents that the appellant has not received any rental income from AP beverage Corporation Limited. In fact, AP Beverage Corporation Limited has collected TCS against the pa....

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....ra Pradesh) are reproduced as under: "17. In our view, the ClT (Appeals) and the Tribunal have rightly held that the assessee is entitled to the credit of the TDS mentioned in the TDS certificates issued by the contractor, whether the said certificate is issued in the name of the Joint Venture or in the name of a Director of the assessee company. They have considered the terms of the agreement dated 12-03-2003 among the parties to the joint venture and held that credit for TDS certificates cannot be denied to the assessee while assessing the contract receipts mentioned in the said certificates as income of the assessee. The income shown in the TDS certificates has either to be taxed in the hands of the joint venture or in the hands of th....

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....filed by the assessees on the ground that TDS certificate is issued in the name of the joint venture or a Director and not the assessee. 4.3.6 In the above case, it was held that since joint venture had not filed return of income and claimed credit for TDS certificates, said credit was to be allowed to the company in capacity of a co-joint venture. The same principle can be followed in the present case though the facts of the case are not completely similar. 4.3.7 Keeping in mind the principle laid down by the Honorable AP High Court and the facts of the case, I am of the considered view that the payments made to the AP Beverage Corporation Limited against the purchase of liquor cannot be treated as income in the hands of the appellan....

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....y the CIT(A) on examination of the documentary evidence produced before him. The AO in the remand report has also not brought any material to show that the amount of Rs. 88,25,300/- received from AP Beverages Corporation Ltd. has not been offered as income by the company. In these circumstances, we do not find any fault with the conclusion drawn by the CIT(A). In fact on perusal of the remand report dated 18/06/2012 of the AO, a copy of which is placed at page 48 of the paper book, it appears that the AO accepts the fact that liquor license in general is only issued to individuals by the Prohibition and Excise Department and not to partnership firms and companies. Further, in paragraph (e) of the remand report, the AO has suggested for excl....