RUDRAKSH BUILDERS Vs. ASSTT. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is an appeal by the appellant -assessee, seeking to challenge the order of the learned ITAT, Ahmedabad Bench 'B' (for short, 'the Tribunal'), Dated : 30.06.2003, rendered in ITA No. 1031/Ahd/2001 for the A.Y. 1996 -97, whereby, the Tribunal dismissed the appeal of the assessee.

(2.) THE brief facts of the case are that the assessee filed its return of income for the year under consideration with certain annexures. One of the annexures contained the amount of bill of construction of Rs. 13,70,000/ - and the other was a T.D.S. Certificate given to the assessee by one Ravi Organizers. The aforesaid Ravi Organizers paid Rs. 16,30,000/ - to the assessee and due that the concerned A.O. took the same as prima facie adjustment and issued an order, under Section 143(1)(a) of the Income Tax Act, 1961 (for short, 'the Act'), to the assessee in respect of an amount of Rs. 2,60,000/ -. The assessee, hence, made an application before the concerned AO, pointing out that the aforesaid was an apparent mistake, but, the AO rejected the same. Therefore, the assessee approached the learned CIT(A), which dismissed the appeal of the assessee. When the matter was carried before the Tribunal by the assessee, the Tribunal also dismissed the appeal of the assessee. Hence, the present appeal.

(3.) MR . Shah, learned Advocate for the appellant, submitted that, since, the assessee had mentioned the amount in question in the account of Ravi Organizers in its Books of Accounts, the AO wrongly considered the same as prima facie adjustment and that the CIT(A) and the Tribunal also erred in confirming the same. He, then, submitted that the Tribunal failed to appreciate the fact that the tax was deductible under Section 194C of the Act even on the advance payment, whereas, the advance payment never become the income of the payee. He, further, submitted that the Tribunal ought to have held that the prima facie adjustment made in the facts of the case was an error.