2017 (4) TMI 1277

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...., she was engaged in civil construction consultancy business on job work basis in the name and style of M/s.Aapil Planning Consultancy. She has filed her return of income on 27.9.2011 declaring total income at Rs. 17,52,050/-.  The case of the assessee was selected for scrutiny assessment and notice under section 143(2) of the Act was issued on 3.8.2012.   On scrutiny of the accounts it revealed to the AO that the assessee has executed job awarded by the Municipal Corporation.  She has disclosed GP at the rate of 13.50% on the total turnover of Rs. 9,92,47,244/- and net profit at the rate of 1.96% on the total turnover of Rs. 9,92,47,244/-.  Her GP rate was lower than immediately preceding year, but net profit was b....

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....   are attached herewith to support the fact of existence of dispute.    Due to ongoing controversey, the assessee had to book 76 as and when cheque was received. That was the only available recourse to the assessee to determine her approved. It can be seen from 26AS that Nanded Waghela Municipal Corporation, Nanded has booked all his TDS finally on F.Y.2012-13.  All the bills were finalized in June, 2012 and September, 2012 which is long after assessee has filed her Return of Income.     On the other hand, the assessee has disclosed all her receipt in the books of accounts.  Therefore, your goodself is requested not to make addition of difference of income as compared to 26AS."....

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....rdingly as per law.  The addition made by the AO is upheld and the ground of appeal is dismissed."    7. The ld.counsel for the assessee at the very outset contended that these receipts have been accounted for by the assessee in the next year, when the municipality has given her cheque and confirmed the payments.  The assessee has also received these receipts in next year.  Alternatively, he contended that the gross receipts cannot be added to the income of the assessee.  It is the income which is embedded in the gross receipts which can only be considered for the addition.  On the other hand, the ld.DR relied upon the orders of the Revenue authorities below.    8. We have duly considered r....