TaxTMI 
TaxTMI 
2015 (9) TMI 1344
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....llant before us is a partnership firm of Chartered Accountants and the first issue relates to an addition of Rs. 28,43,777/- sustained by the CIT(A) as un-reconciled professional receipts on the basis of difference between the information gathered from the Annual Information Report(AIR) and professional receipts declared as per books of account. 3. In this context, Ld. Representative for the assessee pointed out that assessee firm was engaged in providing professional services and was maintaining its books of account on receipt/cash basis. It has been pointed out that the assessee firm receives its professional fees through banking channels. In the course of assessment proceedings, assessee was asked to reconcile the amount of profession....
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....ointed out that there is no material to prove that the entries appearing in the AIR were liable to be taken as professional receipts taxable in the hands of the assessee over and above what has been shown by the assessee in its books of account. The explanation rendered by the assessee before the lower authorities, which has been reproduced in the respective orders, have also reiterated before us. Apart there-from, the Ld. Representative for the assessee referred to the following decisions of the Mumbai Bench of the Tribunal for the proposition that no addition could be made solely on the basis of the AIR information without cross checking with the respective parties:- 1. A. F. Ferguson & Co., ITA No. 5037/Mum/2012 dated 17/10/2014 (Mumb....
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....to each of the parties, which are found tabulated in the order of the CIT(A). In the case of three parties, namely Saraf Chemicals Ltd., SBI Capital Market Ltd., BMD Chemicals Pvt. Ltd., the AIR information revealed certain amount of professional receipts, whereas as per the books of account maintained by the assessee there was nil receipt from the said three parties. The assessee asserted that no services were rendered by it and nor any invoice was raised on the three parties. The assessee also explained that one of its sister concern i.e. Deloitte Haskins and Sells (DHS) had rendered services and raised invoice for the respective amounts and had actually received those amounts. It was pointed out that the three concerns had by mistake ins....
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..... On this aspect also we set aside the order of CIT(A) and direct the Assessing Officer to delete the respective additions. 6.2 Furthermore, with regard to the difference noticed in relation to Mafatlal Holding Ltd., is concerned, assessee pointed out that against the amount of Rs. 4,09,496/- shown in the AIR, assessee had raised invoices of Rs. 4,09,496/- upto the financial year 2008-09, out of which invoices aggregating to Rs. 2,63,428/- have been cancelled and further invoices aggregating to Rs. 1,46,068/- were outstanding as on the date. The assessee explained that the said concern has effected the TDS based on the provision of Rs. 4,09,496/-, and that no amount has been received and, therefore, no amount of professional fee was decl....
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....t payable under section 234A of the Act, for the purposes of section 140A of the Act, is to be computed with respect to the tax payable on the income returned or on income determined in the regular assessment. In this context, the stand of the assessee is that the interest under section 234B of the Act against which tax paid under section 140A has to be adjusted first is required to be computed with respect to the returned income as the 'assessed tax' for the purposes of section 140A has been defined to mean tax on the total income declared in the return as reduced by the amount of tax deducted/collected at source, etc. 7.1 On this aspect, Ld. Representative for the assessee has pointed out that identical controversy has been considered ....