Assessee is company has filed the Return of Income for every year. Since assessee is engaged in the business of executing contracts , due to TDS there is always refund to the company. Almost every year assessment is completed U\/Sec 143(3) by making an addition on the ground of difference in receipts as per 26AS and receipts as per profit and loss account since assessee could not give reconciliation.\u00a0 Assessee submits that since it is company,\u00a0 books of accounts are audited under co act as well as income tax Act and diffrence in mainly due to offering of income on accrual basis and therefore there there is bound to be diffrnece due to offering of income in next year however exact reconciation is not possible due volume of transcation and number of vendors.. assessee also.submitted that if the addition is to be made , then only real income be tax and not all the receipts. In the assessement also no other discrepancies in books of accounts are brought on record by the AO. Assessee filed an appeal for every year and requested AO to withhold refund up to\u00a0 20% demand and issue balance refund.<\/p>\n
However AO is not accepted the request of assessee and adjusted the entire demand and not issued the refund.<\/p>\n
Issues :<\/p>\n
1. Whether action of AO can added entire diffrence in receipts in Form 26AS and books of accounts is justified.<\/p>\n
2. Whether such addition can be made with out rejecting books of accounts u\/Sec 145 of the Act.<\/p>\n
3. Whether AO is correct in rejecting assessee’ s request of holding refund after keeping in 20% demand and issue balance refund to assessee.<\/p>\n
Pl guide .<\/p>\n
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