Dismissing the appeal of the Revenue the Court held that the Tribunal had specifically observed that AO had not verified claim of assessee and the CIT(A) had rightly deleted addition after verification of bank account, contract amount which was received by assessee on basis of running bills. Accordingly, the Tribunal had rightly deleted addition made by AO on account of difference in payment received as per Form 26AS and books of accounts. (AY 2013-14).
PCIT.v. MBC Infra Space (P.) Ltd (2023) 294 Taxman 358) (Guj)(HC)
S. 145 : Method of accounting-Deduction of tax at source-Tax deducted is income received-Running bills-AO was not justified in making addition on account of difference in payment received as per Form 26AS and books of accounts without verifying total contract amount and relevant bills. [S. 198, Form No. 26AS]