TaxTMI 
TaxTMI 
2023 (7) TMI 395
X X X X Extracts X X X X
X X X X Extracts X X X X
....me. 3. The revenue authorities did not consider the fact that difference in gross turnover / sales as alleged, was attributable to service tax levy and thus there was no any difference. 4. The addition made by the AO is beyond the scope of limited scrutiny and thus not as per the norms and issues selected under scrutiny. Therefore, the addition made in assessment order is void and bad in law. 5. The assessee prays before your honour that difference in receipts/sales which the assessee has agreed in assessment and/appellate proceedings be ignored and deleted since the said agreement was not in keeping with facts and circumstances of the case and the law. 6. The assessee prays before your honour that difference in gross receipts/sales cannot be taxed, but profit element therein needs to be taxed, if ultimately the addition is sustained. 7. The learned AO and the CIT(A) has erred in not considering submissions made by the Assessee while making assessment. 8. The learned CIT(A) erred in disposing the appeal without affording adequate opportunity of being heard. 9. The assessee craves leave to add, alter, amend, modify, and ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....her there is difference between the turnover reported in service tax return & turnover reported in Profit & Loss a/c. The very purpose of the limited scrutiny is to verify all the issues identified for examination as mentioned in scrutiny selection. Thus it is binding to verify all the four issues as mentioned supra. The issues are mainly related with the turnover. Therefore, the reporting of turnover in Profit & Loss a/c has been verified by collecting the information strictly related to the reasons for scrutiny selection. On going through the reconciliation statement of 26AS it is revealed that assessee is applying cash system of accounting. He himself admitted that the receipts pertaining to billing made in 2013-14 or in earlier years which are received during the year under consideration is at Rs. 14,57,114/- & the receipts out of billed in F.Y. 2014-15 and received in that year itself are at Rs.1,80,87,426/- aggregating at Rs. 1,95,44,540/-. Thus, considering cash system/Receipt system of accounting followed by the assessee the real turnover of the assessee is at Rs. 1,95,44,540/-. As per accounting system followed by him the said turnover should have been reported in Profit &....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tch and addition. Ld.AR further submitted that while recording and passing accounting entries of sales in books, the assessee is crediting gross receipt to revenue account under head sales i.e. amount received in bank plus TDS thereon if any. At each quarter end, service tax liability is calculated as per service tax return and is paid. The same is debited to revenue account under sales. Thus sales / revenue figure is reflected and appearing net of service tax liability paid in accounts, which is Rs. 1,75,69,979/-. This figure is after debiting and deducting service tax paid. The said figure is reflected in accounts, in ITR and also in tax audit report. Since the same figure of sale of Rs. 1,75,69,979/- is reflected in all the documents, there is no mismatch in sales, which was pointed out by assessee in assessment proceedings and thus no addition was made on this issue/norm. The ld.AR filed paper book containing the following details:- 4. Ld.DR relied on the orders of the lower authorities. Findings and analysis:- 5. We have heard both the parties and perused the records. The assessee in the paper book has filed copy of acknowledgment of return of income at page No. 1, co....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d details of TDS and gross receipts which are already reproduced in earlier paragraph. The said gross receipts have been shown by the assessee in profit and loss account, therefore, the assessee's plea which he has taken before us that gross receipts includes sales tax amount is factually incorrect, as in schedule 6, assessee has shown gross receipts TDS and that gross receipts has been shown in profit and loss account. Had there been any component of sales tax, assessee would have qualified it either in the statement of income or in Form 3CD, but nowhere assessee has qualified the same. In these facts and circumstances of the case, we are of the opinion that the assessee's claim that the difference is on account of sales tax liability is devoid of merit, therefore we uphold the addition made by the AO. Accordingly, ground Nos. 1 to 3 are dismissed. Ground No. 4: 5.4 The assessee has raised that the case was selected for limited scrutiny and therefore, the addition made is out of the purview of limited scrutiny. We have already reproduced in paragraph 'brief facts' the reasons for scrutiny. One of the reasons for selection of case for scrutiny was higher turnover reported in ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ty of being heard to the assessee. On perusal of the ld.CIT(A)'s order, it is observed that ld.CIT(A) has reproduced the assessee's submissions and after considering the submissions, ld.CIT(A) has passed the order. Therefore, there is no merit in the allegation leveled by the assessee that ld.CIT(A) has not given proper opportunity of hearing. Therefore, ground No. 8 of the assessee is dismissed. Ground No. 9 5.9 The assessee has not added, altered, amended or deleted any of the grounds of appeal. As the ground No. 9 is academic in nature, the same is dismissed. No other ground has been pleaded by the assessee. 6. In the result, appeal of the assessee is dismissed. Order pronounced in open Court on 11th May, 2023. ============= Document 1 Sr. No. BEFORE INCOME TAX APPELLATE TRIBUNAL, PUNE 'B' BENCH, PUNE ITA NO. ITA 332/PUN/2023 Mr. Ravindra Arvind Ranade B 27323 V/s The Income Tax Officer, Ward 11(2), Pune The Registrar, Income Tax Appellate Tribunal, Pune Bench, Pune PAPER BOOK-I INDEX LIST OF ENCLOSURES Documents Assessment Year 28/4/23 2015-16 .....Appellant ... Respondent 1. Copy of Acknowled....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... PNEK11980D 6,787 6,787 67,865 Lotus Landmarks (india) Private Limited, TAN- 2,01,158 2,01,158 21,01,706 PNEL05036D MB Chitale Constructions, TAN- PNEM06897C 3,292 3,292 3,29,100 Mahesh Constructions, TAN-PNEM20390G 576 576 57,600 Mather And Platt Pumps Limited, TAN- PNEM02942C 768 768 38,371 Moti Udharam Panjabi, TAN-PNEM06665B 3,093 3,093 30,930 Municipal Commisioner, TAN- PNEM00529E 7,726 7,726 3,43,372 Mysore Petro Chemicals Limited, TAN-BLRM00451D 12,345 12,346 1,23,445 Nandan Varun Developers, TAN- PNEN09952F 22,390 22,390 2,23,900 Nath Constructions, TAN- PNEN06168E 4,101 4,101 41012 Ph4 Food & Beverages Private Limited, TAN- 506 506 50,560 BLRP11254F Pinnacle Neostar Corporation Private Limited, TAN- 5,000 5,000 50,000 PNEP15291D Prestige Holiday Resorts Pvt. Ltd, TAN-MUMP09029G 9,551 9,551 95,506 Prism Cement Limited, TAN-PNEP14089F 281 281 2,809 Progressive Education Society, TAN-PNEP08965F 12,166 12,166 1,21,481 Rohan Builders (india) Pvt. Ltd., TAN- PNER06119B 20,387 20,387 2....