During year, assessee supplied steel furniture to various Government offices and received consideration for same on which\u00a0 some of Government offices deducted TDS before making payment to assessee on account of supply of steel furniture . AO treated the receipts as part of sales and not contract receipts. As the\u00a0\u00a0 assessee failed to produce books of account and supporting evidences to show that amount received by her was part of sales and not contract receipt\u00a0 Tribunal held that the AO\u00a0 was justified in treating amount in question as contract receipt. Interest accrued is assessable as income on accrual basis when the assessee is following mercantile system of accounting. Interest income accrued to assessee was duly recognized by debtor. As the assessee has not produced books of account and supporting vouchers for verification of expenditure booked by her in P&L account-Disallowance of business\u00a0 expenditure is held to be justified. When loan taken by assessee was found to be unexplained and was added to assessee’s income\u00a0 as cash credits, claim of expenditure of interest paid on such loan being consequential to claim of loan which\u00a0 is not allowable as deduction.\u00a0 (AY.2009-10)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 145 : Method of accounting-Books of account not produced -Sale of furniture to Government offices- Treated as sales receipts and not contract receipts -Amount received was part of sales, hence the Assessing Officer was justified in treating same as contract receipt \u2013 Interest accrued- Assessable as income on accrual basis when the assessee is following mercantile system of accounting- Interest income accrued to assessee was duly recognized by debtor -Business expenditure-Not produced books of account and supporting vouchers for verification of expenditure booked by her in P&L account-Disallowance of expenditure is held to be justified- loan taken by assessee was found to be unexplained and was added to assessee’s income as cash credits , claim of expenditure of interest paid on such loan being consequential to claim of loan which is not allowable as deduction. [S. 5, 37(1), 68, 194C, 26AC]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-3610","post","type-post","status-publish","format-standard","hentry","category-digest"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-We","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/3610","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=3610"}],"version-history":[{"count":2,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/3610\/revisions"}],"predecessor-version":[{"id":5069,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/3610\/revisions\/5069"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=3610"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=3610"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=3610"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}