2015 (11) TMI 1214

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....e following additions ordered by the Assessing Officer ('AO'): (a) Rs. 1,09,92,260 on account of difference in contract receipts shown by the Assessee and accounted for by its customer Uniproducts India Ltd. ('UIL'). (b) Rs. 16,67,026 on account of the purchase made from M/s. Amit Steel on the ground that the said party is not traceable. (c) Disallowance of service tax amounting to Rs. 15,64,994 under Section 43B of the Act. 3. As regards the first addition which has been directed to be deleted by the ITAT, it appears that UIL had debited its Profit and Loss Account with a sum of Rs. 3,73,39,842 on the basis of the bills raised by the Assessee whereas the Assessee had disclosed in its P&L account receipts of only....

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.... been accounted for in the books of accounts. It is in fact clear that a bill of Rs. 1,08,92,867 has been accounted for by the Assessee company on 2nd May 2008 whereas the date on the bill (copy enclosed by it) is 24th March 2008. There is no reference of such bill in the Profit & Loss Account or any part of the balance sheet for the year ending on 31st March 2008. 6. The CIT (A) concurred with the AO that the P & L account submitted by the Assessee along with the return of income did not reflect the system of accounting as AS-7. The addition was accordingly maintained. 7. The ITAT, however, accepted that the Assessee was in the business of building construction, and had in fact followed AS-7 while finalising its accounts as per the m....