Sh. Kamal Pannu (Prop), Yamunanagar v. JCIT, Yamunanagar

ITA 51/CHANDI/2011 | 2006-2007
Pronouncement Date: 10-03-2011 | Result: Allowed

Appeal Details

RSA Number 5121514 RSA 2011
Assessee PAN ALNPP7162Q
Bench Chandigarh
Appeal Number ITA 51/CHANDI/2011
Duration Of Justice 1 month(s) 24 day(s)
Appellant Sh. Kamal Pannu (Prop), Yamunanagar
Respondent JCIT, Yamunanagar
Appeal Type Income Tax Appeal
Pronouncement Date 10-03-2011
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted A
Tribunal Order Date 10-03-2011
Assessment Year 2006-2007
Appeal Filed On 17-01-2011
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES A CHANDIGARH BEFORE SHRI D.K.SRIVASTAVA ACCOUNTANT MEMBER AND MS SUSHMA CHOWLA JUDICIAL MEMBER ITA NO. 51/CHD/2011 ASSESSMENT YEAR: 2006-07 SHRI KAMAL PANNU VS. THE JCIT RANGE PROP ENTER CLIMAX SECURITY & YAMUNANAGAR IMPERIAL MARINE YAMUNANAGAR PAN NO. ALNPP7162Q (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI AJAY JAIN RESPONDENT BY: SHRI N.K.SINI ORDER PER SUSHMA CHOWLA JM THE APPEAL BY THE ASSESSEE IS AGAINST THE ORDER OF CIT(A) KARNAL DATED 20.10.2010 RELATING TO ASSESSMENT YEAR 2006-0 7 AGAINST THE ORDER PASSED UNDER SECTION 143(3) OF THE I.T. ACT 1961. 2. THE ASSESSEE HAS RAISED THE FOLLOWING EFFECTIVE GROUND OF APPEAL:- 2. THAT THE LD. CIT(A) HAS WRONGLY CONFIRMED ADDITION AMOUNTING TO RS. 3 50 784/- ON ACCOUNT OF DIFFERENCE IN GROSS AMOUNT SHOWN IN TDS CERTIFICATE S ISSUED BY CONTRACTEE & AMOUNT SHOWN IN PROFIT & LOS S 2 ACCOUNT WITHOUT APPRECIATING THE FACT THAT HE CONTRACTEE HAS MADE DEDUCTION OF RS. 3 50 784/- FRO M THE GROSS AMOUNT OF BILLS. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E IS A CONTRACTOR. THE ASSESSING OFFICER DURING THE COURSE OF APPEAL NOTED THE ASSESSEE TO HAVE CREDITED RS. 12274884/- ON ACCOUNT OF CONTRACTUAL B USINESS IN HIS BOOKS OF ACCOUNT WHEREAS AS PER THE TDS CERTIFICATE ENCLOSED WITH THE RETURN OF INCOME THE RECEIPTS WORKED OUT TO RS. 1 26 28 791 /-. THE DIFFERENCE OF RS. 3 53 907/- WAS ON ACCOUNT OF FOLLOWING TWO CASE S:- ASSESSEE CONCERN NAME OF DEDUCTOR CONTRACT RECEIPTS AS PER TDS CERTIFICATE (RS.) CONTRACT RECEIPTS AS PER ACCOUNTS (RS.) DIFFERENCE (RS.) M/S IMPERICAL MARINES ADDITIONAL COMMISSIONER M.C. CHANDIGARH 1 88 649/- 1 85 526 3 123 M/S ENTERELIMAX SECURITY SANT LONGOWAL INSTITUTE PUNJAB 28 84 322 25 33 538 3 50 784 TOTAL 3 53 907 4. THE ASSESSEE WAS ASKED TO RECONCILE THE DIFFEREN CE AND IN REPLY IT WAS STATED THAT THE SAME WAS ON ACCOUNT OF VARIOUS DEDUCTIONS IN THE PERIODICAL BILLS SUBMITTED BY THE ASSESSEE. THE RE PLY OF THE ASSESSEE WAS NOT FOUND TENABLE BY THE ASSESSING OFFICER AND AN A DDITION OF RS. 3 53 907/- WAS MADE AS INCOME OF THE ASSESSEE. THE CIT(A) HAS CONFIRMED THE SAID ADDITION. THE ASSESSEE IS IN A PPEAL BEFORE US ONLY TO THE EXTENT OF RS. 3 50 784/- AS AGAINST TOTAL ADDIT ION OF RS. 3 53 107/-. THE LD. AR FOR THE ASSESSEE POINTED OUT THAT THE DI FFERENCE OF RS. 3 3 50 784/- IS ATTRIBUTABLE TO THE DEDUCTION ON ACCO UNT OF PF OF VARIOUS PERSONS WHICH IS THE DIFFERENCE IN THE CONTRACTUAL RECEIPTS SHOWN BY THE ASSESSEE AS AGAINST THE CONTRACTUAL RECEIPTS AS PER THE TDS CERTIFICATES. 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORDS. THE ASSESSEE WHILE COMPUTING ITS INCOME HAD REFLECTED T HE CONTRACT RECEIPTS IN ITS BOOKS OF ACCOUNT AT RS. 25 33 538/- AS AGAINST THE CONTRACT RECEIPTS REFLECTED IN THE TDS CERTIFICATES AT RS. 28 84 322/ - IN RESPECT OF THE PARTY M/S SANT LONGOWAL INSTITUTE. THE DIFFERENCE IN THE TWO IS CLAIMED TO BE ON ACCOUNT OF CERTAIN DEDUCTIONS MADE BY THE DEDUCT OR BEING PF TOTALING RS. 3 50 784/-. ONLY SUCH RECEIPTS WHICH HAVE THE CHARACTER OF INCOME ARE TO BE INCLUDED IN THE HANDS OF THE ASSESSEE AND REC EIPTS BEING ATTRIBUTABLE TO STATE LEVY ARE TO BE INCLUDED IN THE HANDS OF TH E ASSESSEE AS THEY HAVE NO INCOME CHARACTER EMBEDDED IN THEM. WE HOLD THAT ONLY SUCH RECEIPTS WHICH HAVE THE CHARACTER OF INCOME ARE TO BE DISCLO SED BY THE ASSESSEE AND NOT THE GROSS RECEIPTS RECEIVED BY THE ASSESSEE . HOWEVER THE CLAIM OF THE ASSESSEE NEEDS VERIFICATION AS THE NECESSARY DETAILS WERE NOT AVAILABLE BEFORE THE ASSESSING OFFICER. WE REMIT THE ISSUE BACK TO THE FILE OF THE ASSESSING OFFICER TO VERIFY THE CLAIM O F THE ASSESSEE IN RESPECT OF THE DIFFERENCE IN THE GROSS AND THE NET RECEIPTS AND IN CASE THE DIFFERENCE IS ATTRIBUTABLE TO THE DEDUCTION ON ACCO UNT OF PF THE SAME IS NOT TO BE INCLUDED IN THE HANDS OF THE ASSESSEE AS THE INCOME FOR THE YEAR. IN CASE THE ASSESSEE FAILS TO ESTABLISH ITS CLAIM THE SAID RECEIPTS ARE TO BE INCLUDED IN THE HANDS OF THE ASSESSEE. IN VIEW THE REOF THE GROUND OF APPEAL RAISED BY THE ASSESSEE IS ALLOWED FOR STATIS TICAL PURPOSES. 4 ITA NO. 51/CHD/2011 6. IN THE RESULT APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 10 TH DAY OF MARCH 2011. SD./- SD/- (D.K.SRIVASTAVA) (SUSHMA CHOWLA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 10 TH MARCH 2011 RKK COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR