AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2018 (8) TMI 664
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.... short "the Act"] dated 22.03.2015 for the Assessment year 2012-13. 2. The only issue to be decided in this appeal is as to whether the ld CIT was justified in invoking revisionary jurisdiction u/s 263 of the Act in the facts and circumstances of the case. 3. The brief facts of this appeal are that the assessee is a private limited company and is an agent of liquor, bottling plant of liquor and engaged in investment activities. The return of income for the Asst Year 2012-13 was electronically filed by the assessee on 30.9.2012 declaring total income of Rs. 43,10,479/- . The assessment was completed u/s 143(3) of the Act on 22.3.2015 determining the total income of the assessee at Rs. 69,00,00/- under the normal provisions of the Act and R....
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....ales to the extent of Sales Tax of Rs. 94,99,332/-. Hence, Sales Tax of Rs. 94,99,332/- debited to Sales was required to be disallowed and added back. Omission to do so resulted in under assessment of income of Rs. 94,99,332/-. B. TCS is a prepaid tax and the assessee is eligible for claiming credit of the same while computing tax payable. Accordingly, the assessee claimed TDS/TCS credit of Rs. 1,16,597/- and the same was allowed in the assessment. Further, the assessee claimed deduction of TCS of Rs. 1,14,270/- from sales. TCS is not deductible from Sales but deduction of the same from sales resulted in reduction of income. Deduction of TCS of Rs. 1,14,270/- claimed by the assessee was required to be disallowed and added back. Omission ....
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....ing the order u/s 143(3) of the Act, on 02.07.2015 on the same subject, "Sales Tax & TCS wrongly allowed". 3. That in response thereof the company submitted letter dated 14.07.2015. The company explained that gross sales include Excise Duty, Sales Tax, and TCS collected from Vendor. That in same letter the company admitted that remark given in note no. 2.6 "Revenue recognition" stating "Sales includes Excise Duty but excludes Sales Tax and VAT, was a clerical typing error made by the auditor of the company in its audited annual accounts of the company for the year ended on 31st March, 2012. For the purpose, the auditor of the company issued the clarification letter dated 14.07.2015, said clarification letter was filed along with letter o....
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....Sheet Note No. 18, Gross Sales includes Excise Duty, Sales Tax and TCS collected from Vendor which has been deducted to derive Net Sales but in Balance Sheet, Note No. 2.6, 'Revenue Recognition' , it was stated that Sales includes Excise Duty but excludes Sales Tax and VAT which was clerical typing error for which a certificate was enclosed from a Chartered Accountant. TCS deducted in Note No. 18 is the TCS collected by the assessee on the sales from Vendor which was later deposited to the account of the Central Government. The assessee sells Alcoholic Liquor on which they had to collect TCS from the Vendor of the sales amount. It was duly clarified by the assessee that the tax credit claimed by it while computing the tax liability in the f....
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....,14,270/- Service Tax 15,15,274/- 1,78,73,824/- Net Revenue from Operations (A) + (B) - (C ) 2,46,12,545/- 7.2. We find that the tax collected at source of Rs. 1,14,270/- represents TCS collected from buyers as per section 206C of the Act. In the case of sale of alcoholic beverages for human consumption, the Act authorize the seller to collect from the buyer , the applicable TCS which is included in the invoice raised on the buyer and the said TCS was duly remitted by the assessee to the account of the Central Government. The assessee also had placed the entire date wise and party wise sales statement for the period 1.4.2011 to 31.3.2012 clearly mentioning the quantity, rate per case, value of go....
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....d from the tax audit report in Annexure A to Form 3CD enclosed in page 62 of supplementary paper book wherein the method of valuation of inventories is mentioned and the items included in the valuation of inventories. It was specifically stated that the excise duty in respect of goods manufactured is accounted upon removal of goods from the factory. This goes to prove that there is neither a debit towards excise duty in the profit and loss account ( in respect of goods lying in closing stock) for consequential inclusion of the same in the valuation of closing stock as per section 145A of the Act. Hence we hold that there is no violation of section 145A of the Act. All these details were duly available before the ld AO himself which has been....