TaxTMI 
TaxTMI 
2018 (12) TMI 187
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.... in upholding the finding of A.O. that amount received from various parties pertain to the assessee firm and not the proprietorship concern of Sh. Sanjeev Soni, thereby, confirming the addition of Rs. 14,38,265/-. He has further erred in not directing to allow the TDS credit of Rs. 1,44,265/-. 3. The ld. CIT(A) has further erred on facts and in law in not accepting the contention of assessee that the entire receipt of Rs. 14,38,265/- should not be added but only the profit earned thereon should be taxed. 4. The assessee craves to amend, alter and modify any of the grounds of appeal. 5. The appropriate cost be awarded to the assessee." 2. Ground No. 1 of the appeal is regarding validity of reopening of the assessment. At the time of h....
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.... the TDS under the PAN of partnership firm and therefore, it was wrongly credited in the account of the partnership firm instead of proprietorship concern. The Assessing Officer did not accept the explanation of the assessee and made the addition of the said amount of Rs. 14,38,265/- in the hand of partnership firm. 4. The assessee challenged the action of the Assessing Officer before the ld. CIT(A) and reiterated the explanation that the TDS was deducted by the payers under the PAN of the dissolved partnership firm and therefore it was a non-existing entity whereas the entire receipt of Rs. 14,38,625/- has been shown by the assessee proprietorship concern in its income and was also offered to tax. The ld. CIT(A) confirmed the addition ma....
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....o claimed the TDS of the entire amount including the amount in question. The ld AR has also referred to the ledger account of all these parties and submitted that the amount shown in 26AS are matching with the amounts which are shown in the ledger account of proprietorship concern and therefore, the entire receipt is part of the receipts shown by the proprietorship concern in the P&L account at page 35 of the paper book. Thus, the ld AR has submitted that when the assessee has produced all the details before the Assessing Officer as well as the ld. CIT(A) to establish the fact that the receipt shown in the 26AS are actually receipt of proprietorship concern and are offered to tax in the hand of proprietorship concern. The ld AR has also ref....
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....re the authorities below that it was a mistake on the part of the payers to deposit the TDS in the PAN of dissolved partnership firm instead of proprietorship concern. We note that at the time of dissolution, one of the partner Shri Sanjeev Soni has taken over the business of the partnership firm and continued with the same name M/s Destiny Consultants, which was also the name of the partnership firm. Therefore, the confusion in deducting the tax under wrong PAN arises due to the similarity of the name of business entity under the partnership firm as well as the subsequent proprietorship concern. We have gone through the details of the 26AS and noted that against the consultancy services various companies namely ICICI Prudential, Kotak Secu....
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....e Act has accepted this explanation of the assessee as under: "Notice u/s 148 was issued on 29.03.2016 after recording reasons and taking prior approval from the Pr. CIT-1, Jaipur. No return has been filed in response to notice u/s 148. Therefore, notice u/s 142(1) alongwith query letter was issued on 03.06.2016. No response has received. Further letter is issued on 16.08.2016. In response to this letter Sh. Jagdish Somani, CA and Id. A/R of the assessee attended and filed the written submission. The Id. A/R submitted that the receipts of Rs. 12,58,744/- received from different parties were included in the return filed by Sh. Sanjeev Soni. An affidavit is also filed in support of reply. Considering the facts of the case and reply filed, t....