2026 (4) TMI 461

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.... 2. The solitary grievance of the Assessee relates to the sustenance of an addition amounting to Rs. 77,50,284/-, predicated on a discrepancy between the gross receipts reflected in Form No. 26AS and the turnover disclosed in the Assessee's books of account. 3. Briefly stated, the facts are that the Assessee is an individual engaged in the business of a civil contractor under the proprietary concern M/s Shilpi Associates. For the year under consideration, the assessee filed his return of income on 28th March 2016, declaring a total income of Rs. 10,55,750/ -. The case was subsequently selected for limited scrutiny. During the scrutiny proceedings, the Assessing Officer noted that as per Form No. 26AS, the assessee received Rs. 79,....

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....t finding of ld CIT(A) is reproduced as under: "5.2 GROUNDS OF APPEAL NOS. 2 to 6: The appellant during the appellate proceedings stated that the Assessing Officer erred in recomputing income at 88,06,034/- by adding entire difference in gross receipts. Assessing Officer erred in not adjusting various direct and indirect expenses, thereby duplicating income. The appellant is a small contractor and had declared turnover of 65,81,057/- with net income of 10,55,750/ -. Further, as per appellant, out of the gross receipts reflected in Form 26AS of 1,03,84,631/-, a sum of 77,50,284/- was already accounted in F.Y. 2013-14. However, the payer company booked it in F.Y. 2014-15 and deducted TDS in that year, leading to mismatch. Further, th....

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.... The appellant has argued that receipts of 77,50,284/- were already Vaccounted in F.Y. 2013-14. However, no corroborative evidence has been produced to demonstrate that such receipts were indeed declared as income in the earlier year. Mere entries in self-maintained books are insufficient unless backed by third-party confirmations, audited accounts, or reconciliation accepted by the concerned deductors. On the contrary, Reliance Brands Ltd., a major payer, has specifically denied any transaction in F.Y. 2013-14. This denial weakens the appellant's case considerably. Therefore, the Assessing Officer's action of treating the receipts as pertaining to F.Y. 2014-15 is correct in law. The appellant's plea that proportionate expense....

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....ccordingly, Grounds No. 2, 3, 4, 5 & 6 are dismissed." 6. Before us, the Ld. Counsel for the Assessee vehemently argued that the assessment was concluded in haste on 19.12.2017, despite a request for an adjournment until 26.12.2017 to submit a detailed reconciliation. It was submitted no reasonable opportunity was provided to the assessee to explain the reconciliation of the receipt which were appearing in the Form No. 26AS and not offered for tax in the assessment year under consideration with the income already offered in assessment year 2014-15 i.e. immediately preceding assessment year. assessee filed detailed reconciliation statement along with profit and loss account for assessment year 2014-15 and return of income for assessment y....