TaxTMI 
TaxTMI 
2026 (3) TMI 698
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....s at Rs. 24,33,09,074/-, the income was assessed u/s 143(3) at assessed income of Rs. 2,20,34,35,833/- after making two impugned additions which are as follows: (i) Addition on account of difference in turnover as per P and L A/c and invoice raised under the GST provisions to Rs. 2,18,61,14,060/-. (ii) Addition on account of interest income u/s 56 to Rs. 26,06,30,847/-. 3. Aggrieved with the above order, the assessee preferred an appeal before the Ld. CIT(A)/NFAC, Delhi and after considering detail submissions of the assessee, Ld. CIT(A) deleted the additions made by the Assessing Officer. 4. Aggrieved with the above order, Revenue is in appeal before us raising following grounds of appeal: "i. Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the addition of Rs. 218,61,14,060/- on account of difference in turnover by accepting the additional evidence u/s 46A, whereas the assessee has failed to prove that the impugned payments were received by the assessee in F.Y. 2017-18 and 2018-19 and were also accounted for in the books of accounts of the assessee of the relevant year." ii. Whether on th....
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.... and 2018-19. In these years NHAI had made the payment and had also deducted TDS on the same which were duly accounted in those respective years by the assessee. To prove the same the assessee has at PB page 87 to 101 annexed the Confirmation from NHAI, Copy of Form 26AS, and copy of bank account where the said amounts were credited in those years. Hence, there was no need to again account for these invoices in the impugned assessment year i.e. 2000-2021. -During the appellate proceedings before the Ld. CIT(A) the remand report was called for from the Ld. AO, which has been placed at PB page 55-57 and also finds mention at CIT(A) order at page 47 to 49. In the said remand report the Ld. AO has himself stated at para 6 as below: "6. In view of the above it appears that the difference in turnover as per GSTR 1 and turnover as per profit and loss account is due to invoices related to financial year 2017-18 and 2018-19" -Thus the Ld. AO after verifying the additional evidences has himself accepted that the difference in turnover as per GSTR 1 and profit and loss account is due to invoices which related to financial year 2017-18 & 2018-19. -The additi....
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....,05,773/- made therein is deleted. Accordingly, the Ground Nos. 3, 4 and 5 are hereby allowed." 2. The second ground of appeal is in regard to the deletion of addition of Rs. 26,06,30,847/- for notional interest which was reduced in the computation of income for which the addition was made by the Ld. AO. u/s 56 of the Act. In this regard we briefly submit as under: -In the assessment order the Ld. AO has made addition of Rs. 26,06,30,847/- u/s 56 of the Act on account of notional interest on service concession receivable which the assessee had reduced in its computation of income, since the said income was only notional and was accounted for to follow the IND-AS which were followed by the assessee company. -During the course of assessment proceedings the assessee had explained to the Ld. AO that interest on service concession receivable and interest on deferred retention liability were notional incomes, accounted for in compliance to the provisions of IND-AS and the same cannot be taxable under the provisions of the Income Tax Act, as under the provisions of the Act only actual incomes need to be brought to tax and not notional incomes. However, the Ld. A....
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....e for A.Ys 2019-20 to 2024-25, as per the following details: AY Notinal Income Cr. To P&L A/c Actual Int. Income Offered to Tax in Computation Narration 2019-20 29,47,17,866.00 Finance Income booked as per Indas FY 19 2020-21 25,93,25,585.39 Indas impact for the FY 2019-20 2021-22 28,72,01,691.00 43,49,96,843.00 Indas impact for the FY 2020-21 2022-23 30.44.23.860.30 41.07,85,826.00 Indas impact for the FY 2021-22 2023-24 33,74,32,351.00 44,97,23,693.00 Indas impact for the FY 2022-23 2024-25 29,12,68,690.00 49,12,51,236.00 Indas impact for the FY 2023-24 Total 1,77,43,70,043.69 1,78,67,57,598.00 10.4. Further, on perusal of the assessment orders passed for the subsequent A.Ys. 2021-22 and 2022-23, it is seen that the Assessing Officer has accepted the appellant company's contention with regard to interest income offered on actual accrual basis and deduction of interest credited on notional basis as per IND-AS. 10.5. In light of the above discussion and findings, it is held that the addition of Rs. 26,06,30,847/- made by the AO in respect of int....