TaxTMI 
TaxTMI 
TaxTMI 
2017 (3) TMI 1894
X X X X Extracts X X X X
X X X X Extracts X X X X
....eturn of income for assessment year 2009-10 on dated 23.09.2009 declaring total income of Rs.85,39,43,105/-. Subsequently, the assessee`s case was selected for scrutiny U/s 143(3) of the Act and AO has assessed the income of the assessee at Rs.90,01,69,060/-. Later on the ld CIT has exercised the jurisdiction U/s 263 observing that there is difference in the income reported by the assessee and the income accrued as per TDS certificates. The ld CIT observed that during the year under consideration an amount of Rs. 7188898209 (Rs.7181369792 + Rs.7528417) as per TDS certificates was the accrued income from sales during the year on which TDS of Rs.87854016 (Rs.87680873 +Rs.173143) was deducted by the deductee, Viz, Indian Navy/Coast Guards. Th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....as credited to P & L A/c which included Rs.8218.54 lakhs as interest income from banks etc. It was further observed that during the year TDS of Rs.24333425 which included TDS of Rs.172609586 deducted by different banks on payment/credit of Rs.837810542/- (as per TDS certificates) was allowed. The difference amount of Rs.15956542 (Rs.837810542 - Rs.821854000) was required to be treated as income during the year. However, on perusal of scrutiny assessment proceedings, it is found that the A.O. has not examined these two issues properly and in the right perspective/detail to examine and to come to a correct conclusion in regard to the facts on these aspects and etc. In fact, the A.O. did not take cognizance of the inconsistencies spelt out ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ing financial transactions and do complete reconciliation vis-a- vis the TDS certificates and the amounts mentioned therein. 4. Not being satisfied with the order of ld. CIT(A), the assessee is in appeal before us and has taken the following grounds of appeal :- 1) That the Order of Revision U/S 263 passed by the Commissioner of Income-tax is bad in law and not based on the facts of the circumstances of the case. 2) That without prejudice to the contention raised in Ground No.1 above, the Commissioner of Income-tax was wrong in holding that the Assessment Order passed U/S 143(3) by the Assessing Officer, was found by him to be allegedly erroneous in so far as it was allegedly prejudicial to the interest of revenue. 3) That without....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... for the Revenue also submitted that as per section 199 read with Rule 37BA (3)(i), the TDS claimed by the asessee should not be allowed, that is, only those TDS should be allowed which pertain to the income declared by the assessee for the assessment year under consideration. 7. Having heard the rival submissions, perused the material on record, we are of the view that there is merit in the submissions of ld DR for the Revenue, as his propositions are supported by the provisions of section 199 of the I.T. Act, read with Rule 37BA (3) of the Income Tax Rules,1962 which read as under: RULE 37BA: Credit for tax deducted at source for the purposes of section 199. (1) Credit for tax deducted at source and paid to the Central Government in....