SHARAD SINHA,BANGALORE vs. ACIT, CIRCLE 17(1), MUMBAI, MUMBAI

This appeal is filed by the assessee against the order of the Learned Commissioner of Income-tax (Appeals), Mumbai/National Faceless Appeal Centre, Delhi [hereinafter referred to as “CIT(A)”] dated 02.05.2025 passed u/s. 250 of the Income-tax Act, 1961 [hereinafter referred to as “Act”] for the Assessment Year [A.Y.] 2016-17.

are as followed: “1 The Learned Assessing Officer grossly erred in making an addition of the differential amount between the returned income and the income reflected in Form 26AS, without appreciating that the appellant is eligible for certain exemptions and deductions which were duly claimed from the gross taxable income. The Hon'ble CIT(A) further erred in confirming the addition made by P a g e |

2. ITA NO. 4325/mum/2025. the Assessing Officer without properly considering the appellant's legitimate claims for exemptions and deductions under the provisions of the Income Tax Act, which total up to Rs 4,96,734. a. The Learned Assessing Officer erred both in law and on facts by not allowing the exemption under Section 10(13A) amounting to Rs. 3,12,714/- towards House Rent Allowance, and the exemption under Section 10(14) amounting to Rs. 19,200/- towards Transport Allowance received by the appellant and Profession Tax of Rs.2,400/- deducted by the employer. The Hon'ble CIT(A) also erred in not allowing the exemption under Section 10(13A) as claimed. b. The Learned Assessing Officer erred both in law and on facts by not considering the applicable deduction amounting to Rs. 1,62,420/- claimed under Chapter VI-A of the Income Tax Act, 1961, in the return of income. The Hon'ble CIT(A) also erred in not allowing the deductions under Chapter VI-A as claimed by the appellant. The appellant craves leave to add, amend, or withdraw any ground of appeal at any stage.”

3. The brief facts of the case are that the assessee filed return declaring total income of Rs. 25,52,620/- from salary and other sources for A.Y. 2016-17. The case was selected for scrutiny and assessment was completed u/s. 143(3) of the Act vide order dated 10.12.2018 determining total income of Rs. 79,94,860/- after making addition of Rs. 54,42,240/- u/s. 68 on account of unexplained cash credits. The assessee’s appeal filed against the assessment order is still pending before ld. CIT(A). Meanwhile ld. AO issued an order u/s. 154 on 28.03.2023 and made addition of Rs. 5,52,434/- on account of difference in receipts shown as per 26AS and the ITR. The assessee preferred another appeal before the ld. CIT(A) against the order u/s. 154. Vide order dated 02.05.2025, ld. CIT(A) partly allowed the assessee’s appeal by granting TDS credit and deleting the addition on account of difference in brokerage income. The assessee is, however,

P a g e | 3 ITA NO. 4325/mum/2025. aggrieved that relief for difference in salary income shown in the return and in 26AS and deductions of Rs. 19,200/- u/s. 10(14) of the transport allowance and Rs. 3,12,714/- towards house rent allowance u/s. 10(13A) were not allowed as claimed and hence the assessee has filed an appeal against the order u/s. 154 before the Tribunal.

Order Pronounced in Open Court on 07.10.2025