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Income Tax Appellate Tribunal, “A’’BENCH: BANGALORE
Before: SHRI N.V. VASUDEVAN & SHRI B.R. BASKARAN
The assessee has filed this appeal challenging the order dated 26.10.2021 passed by Ld. CIT(A)-11, Bangalore and it relates to the assessment year 2017-18. The assessee is aggrieved by the decision of Ld. CIT(A) in confirming the addition of Rs.32,13,365/- made in the intimation issued by CPC u/s 143(1) of the Income-tax Act,1961 ['the Act' for short] for the assessment year under consideration.
Pramod Kumar Shantilal, Bangalore ` Page 2 of 3 2. The Ld. A.R. submitted that the assessee filed his return of income on 17.2.2018. In the return of income, the assessee has declared interest income under the head “Other sources” to the extent of Rs.2,648/-. He submitted that the assessee had earned interest income of Rs.34,44,278/-against which it claimed interest expenditure of Rs.34,41,630/-. Accordingly, the net interest income worked out to Rs.2,648/- and the same was filled up in the return of income. However, in form No.26AS, the gross interest income was shown at Rs.34,44,278/-. The assessee had disclosed total income of Rs.2,30,913/-. Hence, the difference between the above said two figures was added to the total income in the intimation.
The Ld. A.R. fairly admitted that the proposal to make the adjustment was sent to the assessee, which was noticed by the assessee later only. Hence, he could not object to the proposal and hence the intimation was passed by making the adjustment. The Ld. A.R. submitted that the Ld. CIT(A), however, took the view that the assessee should have revised the return of income by including correct figures. The Ld. A.R. submitted that there is no mistake in the return of income filed by the assessee, warranting a revision. The error committed by the assessee was only with regard to the non-furnishing of gross interest income and corresponding expenditure. Accordingly, he prayed that this matter may be restored to the file of the A.O. for examining the claim of the assessee.
We heard Ld. D.R. and perused the record. The claim of the assessee is that he has earned gross interest income of Rs.34,44,278/- and incurred interest expenditure of Rs.34,41,630/-. Accordingly, he has shown net interest income of Pramod Kumar Shantilal, Bangalore ` Page 3 of 3 Rs.2,648/- only in the return of income. The gross income of Rs.34,44,278/- includes the interest income shown in form No.26AS. If the above said contentions of the assessee are found to be correct, then no addition is called for on account of difference between form No.26AS and the return of income filed by the assessee. However, this contention of the assessee requires examination at the end of the A.O. Accordingly, we set aside the order passed by Ld. CIT(A) and restore this issue to the file of the A.O. for examining the claim of the assessee. After affording adequate opportunity of being heard to the assessee, the A.O. may take appropriate decision in accordance with law.
In the result, the appeal filed by the assessee is treated as allowed for statistical purposes. Order pronounced in the open court on 23rd Mar, 2022.