TaxTMI 
TaxTMI 
2024 (9) TMI 1097
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....order dated 29.12.2018, u/s 143(3) of the Income-tax Act, 1961 (hereinafter referred as the "Act"), passed by the Dy. Commissioner of Income-tax, Circle 11(1), New Delhi (hereinafter referred in short as "Ld. AO"). 2. Heard and perused the record. At the outset it is pertinent to mention that vide ITA no. 363/Del/2015 the Revenue had also challenged the impugned order dated 29.10.2014 of CIT(A) and vide order dated 14.03.2019, the Revenue's appeal stands dismissed on merit. The appeal of the assessee was also dismissed on 18.02.2019 for non appearance but stands recalled vide order dated 09.09.2022 vide M.A. No. 403/Del/2019. 3. The Assessing Officer had made disallowance on account of creditors on cash basis; expenses payable; mobili....
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....) that it is in the nature of salary and therefore, the payment of Rs. 81000 /- is under the limit for deducting TDS on the salary. In respect of donation also, the Id. CIT(A) has rightly sustained the disallowance of donation to the extent of Rs. 5000/- out of Rs. 8,000/- for want of evidence. We, therefore, find no infirmity in the impugned order on this score. Further in respect of Rs. 15,450/ on account of difference in Form No. 26AS. The assessee has rightly explained by the Id. CIT(A) and Rs. 15,450 was a service tax on account of supply of labour to M/s Dyna Aircon Pvt. Ltd. which has been separately accounted for. Therefore, we do not find any justification to interfere with the order of ld. CIT(A) on this issue." 5. The assessee....
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....o the mobilization advance from Hoogly Holdings amounting to Rs. 28,17,320/-, the claim of assessee was as follows; "14. That similarly for the assessment year 2010-11, the appellant enclosed a chart of TDS as per 26AS. In this year M / s Hoogly Holding has credited the following sums:- Date Amount TDS 08.01.2010 14,08,660 28,173 03.02.2010 14,08,660 28,173 31.03.2010 35,00,000 70,000 Total 63,17,320 1,26,346 The above mentioned entries are explained as under: a. Rs. 14,08,660/- X 2 = Rs. 28,17,320/-:- This amount represents mobilisation advance by M/s . Hoogly Holdings (P) Ltd received by the appellant on 04.02.2010. Copy of the evidence (email) is enclosed herewith. T....
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.... conditions of the contract but also received in the relevant AY. Therefore, the advance contract receipts of Rs. 28,17,320/- taxed in the relevant AY by the AO is sustained holding the year of receipt as the year of accrual in view of above finding. Since this sum is not offered for tax in the subsequent years; therefore, the question of its allowance thereafter herein, in any year, does not arise." 6.4 As with regard to disallowance of purchase of iron of Rs. 4,78,818/-, the issue is decided against the assessee by the CIT(A) as per following findings: "8. The next issue is regarding disallowance of purchase of iron of Rs. 4,78,818/-. The AO disallowed it holding that the appellant has neither consumed this material nor shown ....
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....erial on the record. Admittedly, the iron of Rs. 4,78,818/- bought on 31.03.2010 was not in physical possession of the appellant for consumption on or before as on 31.03.2010. Therefore, irrespective of method of accounting followed by the appellant; the same is bound to be reflected in the closing stock which has not been done by the appellant. Therefore, I find merit in the AO's finding. Accordingly. the addition of Rs. 4,78,818/- is sustained holding it as undisclosed closing stock." 6.5 After taking into consideration the Coordinate Bench order dated 14.03.2019 (supra), we are of the considered view that once the dispute between the tax payer and the Revenue, as to applicability of mercantile system or cash system of accounting i....