TaxTMI 
TaxTMI 
2018 (6) TMI 1566
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.... 1. Whether on the facts and circumstances of the case, the ld CIT(A) has justified in allowing the appeal of the assessee and deleting the addition of Rs. 72,76,821/- made on account of undisclosed receipts." 2. The assessee is a company and engaged in the business of advertisement. The assessee filed its return of income from the year under consideration on 15th October, 2010 declaring total income of Rs. 1,16,41,540/-. During the scrutiny assessment, the Assessing Officer asked the assessee to reconcile the gross receipts as mentioned in the books of account with that of the 26AS. The completed the assessment U/s 143(3) of the Income Tax Act, 1961 (in short the Act) on 21st June, 2012 accepting the reconciliation filed by the ....
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....o Central Excise Department during the year under consideration and therefore, the assessee has not claimed the deduction of full amount in the P&L account. The Assessing Officer has noted that the assessee has not shown in the service tax return the amount which is actual receipt of the assessee and there are discrepancies in the receipt shown in the income tax return and in service tax return. As per the service tax return, the assessee has shown the receipt of Rs. 15,02,04,707/- whereas as per the bill raised including service tax, the amount is Rs. 20,52,54,497/-, thus there is also a discrepancy in the amount shown in the service tax return as against the actual receipt of the assessee. She relied on the order of the Assessing Officer.....
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....rn. However, we find that up to the assessment year under consideration, the service tax was to be paid on the basis of amount collected or received and not on the basis of bills raised by the assessee including the service tax. Therefore, if the assessee is showing the total receipts in the books of account on the basis of bill raised and the service tax return was filed on the basis of amount collected or actual receipt then the explanation of the assessee cannot be faulted with in respect of the amount of difference between the total receipts shown in the books and the receipts shown in the service tax return. The assessee has furnished reconciliation explaining the cause of discrepancy in the receipt shown in the 26AS statement and the ....
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.... * The appellant has claimed that some parties have wrongly credited the amount in its account but the evidences were not produced. In view of the above observations, it was concluded by the AO that the appellant has not disclosed receipts to the tune of Rs. 72,76,821/-. (ii) It is noted from the from the reconciliation statement that gross receipts shown in service tax return and gross receipts shown in books of accounts are as under: Amount for which invoices issued as per service tax return Amount received against service provided as per service tax return Total 1,8,62,42,673/- 15,02,04,707/- Less: credit note issued during the year 40,90,034/- - Add: credit note reversed during the y....