TaxTMI 
TaxTMI 
2020 (11) TMI 175
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....iction in so far as within 12 months there was no service of notice under section 143 (2) of the Act which is mandatory requirement of the Act, hence the assessment is liable to be annulled. 4. That in any view of the matter the gross receipt as declared by the appellant is true and correct which was estimated by the Assessing Officer at Rs. 1,24,06,975.00 is highly unjustified in the facts and circumstances of the case. The allegation of the Assessing Officer about non-disclosure of correct receipt from M/s. Nagarjun Construction Co. is not correct. 5. That in any view of the matter extra addition of Rs. 5,29,882.00 is highly unjustified in the facts and circumstances of the Assessing Officer is without any material and basis on record. 6. That in any view of the matter findings and observations of the Assessing Officer in the order regarding alleged suppression and about profit are incorrect and contrary to the actual facts of the case. 7. That in any view of the matter addition of Rs. 4,26,830.00 by saying unexplained capital from introduced by the two partners is highly unjustified in the facts and circumstances of the case. 8. That ....
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....mated the income of the assessee by applying the Net Profit rate before depreciation @10% on the total payments, which was re-worked out by the Assessing Officer at Rs. 1,24,06,975/-, after making the addition of Rs. 15,58,492/-, as un-accounted receipts. Consequently, the Assessing Officer has made a trading addition of Rs. 5,29,882/-. The assessee challenged the action of the Assessing Officer before the CIT(A). However, nobody has attended the proceedings/hearing before the CIT(A) and consequently the appeal of the assessee was dismissed by the CIT(A) by passing the impugned ex-parte order. 5.3. Before the Tribunal, the Ld.AR of the assessee has submitted that the Assessing Officer has made an addition of Rs. 15,58,492/- to be the gross receipts of the assessee, without considering the fact that the said amount is part and parcel of the total receipts of Rs. 59,70,453/- received from M/s.Nagarjun Construction Co., against which TDS of Rs. 67,653/-, was deducted and had been shown in the return of income. Ld.AR has further submitted that the assessee has explained this fact during the assessment proceedings, however, the Assessing Officer has ignored the facts pointed ou....
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.... of the authorities below. 5.5. Having considered the rival submissions as well as the relevant material on record, it is noticed that the Assessing Officer has issued a notice u/s.133(6) of the Act to M/s.Nagarjun Construction Co., calling for information regarding total payments made to the assessee, such income has confirmed the payment vide two TDS certificates, one of Rs. 59,70,453/-, which was declared by the assessee in the books of accounts as well as in the return of income and the other one for Rs. 15,58,492/-. The Assessing Officer was of the view that the second payment of Rs. 15,58,492/- was not accounted and disclosed by the assessee and therefore the Assessing Officer has added the said amount to the gross receipts of the assessee. Further, there are some claims of fuel expenses, prior to commencement of the business which are not allowable deduction, therefore the Assessing Officer has held that the book results of the assessee are not giving a true picture of the affairs of the business of the assessee. Accordingly, the Assessing Officer rejected the books of accounts by invoking the provisions of Section 145(3) of the Act. It is pertinent to note that the as....
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.... disputed the fact that he has reported only Rs. 59,70,453/- but contended that this amount of Rs. 15,58,492/- is part and parcel of Rs. 59,70,453/-. However, this is not the fact appearing from the certificates issued by M/s.Nagarjun Construction Co. Though the payment was not received by the assessee during the year under consideration, however, once the said payment was accrued and become due in the year under consideration, the actual receipt of the payment becomes irrelevant when the assessee is following the Mercantile System of accountancy. Since the assessee has not claimed the TDS credit against the said amount, therefore, the corresponding TDS credit shall be allowed to the assessee once the said amount is added to the gross receipt of the assessee. Hence, to the extent of the addition of Rs. 15,58,492/- in the gross receipts is confirmed. Ground Nos.4 & 6 are partly allowed. 6. Ground No.5 is regarding protective addition so made by the Assessing Officer on account of un-explained capital introduced by the two partners of assessee-firm. The Assessing Officer noted that during the year under consideration, there is a change in the constitution of the partnersh....