COMMISSIONER OF INCOME TAX Vs. SUDHIR SEKHRI

JUDGEMENT

(1.) CM Nos. 3924/2010 & 3938/2010.

(2.) THESE appeals raise identical issues and are, therefore, being disposed of by this common order. Both the appeals arise out of the order dated 05.12.2008 passed by the Income Tax Appellate Tribunal in ITA Nos. 2853 and 2854/Del/2007 relating to the assessment years 2003 -04 and 2004 -05.

(3.) THE revenues were on account of fabrication charges stated to be received by the assessee from Fabritex Exports Pvt. Ltd. As aforesaid, the addition was made on the basis of the TDS certificate issued by the said Fabritex Exports Pvt. Ltd. When the assessee was asked to reconcile the difference in the figures shown in the books as having been received from Fabritex Exports Pvt. Ltd. and the figure as computed on the basis of the TDS certificate, the assessee enclosed a certificate from the said Fabritex Exports Pvt. Ltd. stating therein that the amount stated in the TDS certificate was computed by the computer incorrectly and the correct amounts were disclosed to the Assessing Officer. A certificate from Fabritex Pvt. Ltd. was also filed before the Commissioner of Income Tax (Appeals), which showed that the amount paid was only Rs. 2.45 crores for the year 2003 -04 and not Rs. 2.63 crores. It was apparent that the error had happened due to the fact that though the tax was deducted at the rate of 2.20%, yet when the certificates were made, the rate of tax deduction was shown as 2.05%. Since the computer took the rate of deduction as 2.05% and applied the same to the amount of Rs. 5,39,443/ -, being the tax actually deducted, the amount shown as paid to the assessee by Fabritex Exports Pvt. Ltd. was correspondingly increased. The certificate also indicated that as per the ledger account maintained by Fabritex Exports Pvt. Ltd., the amount payable and paid to the assessee for the fabrication charges was Rs. 2.45 crores and not Rs. 2.63 crores for the assessment year 2003 -04.