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Facts
The Assessing Officer made an addition due to a discrepancy between the income reflected in Form 26AS and the assessee's Profit & Loss Account. The assessee argued there was no difference or that Form 26AS was revised later, but the CIT(A) confirmed the AO's order, rejecting the assessee's contention.
Held
The Tribunal determined that the actual position regarding the discrepancy between Form 26AS and the Profit & Loss Account needed further clarification. Consequently, the issue was remitted back to the Assessing Officer for re-adjudication, with instructions to grant the assessee a fair hearing and opportunity to submit supporting documents.
Key Issues
Whether the addition made by the AO and confirmed by the CIT(A) on account of a discrepancy between Form 26AS and the Profit & Loss Account was justified without proper ascertainment of facts.
Sections Cited
250
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Income Tax Appellate Tribunal, “A” BENCH,KOLKATA
Appearances by: Assessee represented by :Promit Majumdar, Advocate Department represented by : Soumitra Ghosh, Addl.CIT, Sr. DR Date of concluding the hearing : 21.08.2025 Date of pronouncing the order : 19.11.2025 O R D E R
PER RAJESH KUMAR, ACCOUNTANT MEMBER
This appeal arises from order dated 03.03.2025, passed u/s 250 of the Income Tax Act, 1961 (hereafter “the Act”) by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereafter “the Ld. CIT(A)].
At the outset, we note that there is a delay of 196 days in filing of the appeal by the assessee for which the condonation petition along with affidavit has been filed. After hearing the rival contentions and perusing the material available on record, we find that the delay is for sufficient and bonafide reasons and accordingly condoned.
We find that in the case, the AO has made an addition on account of difference between the income as per Form 26AS vis a vis Profit & Loss Account of the assessee. According to the assessee, there is no Amity Pharmaceuticals Marketing difference between Form 26AS and Profit & Loss Account of the assessee. The CIT(A) also confirmed the assessment order by recording the finding that the plea of the assessee that Form 26AS was revised subsequent by the party after filing the return of income by the assesseee is incorrect and accordingly ld. CIT(A) confirmed the order of AO. To this extent, we are of the view that the correct position as to the discrepancy between form 26AS and Profit and Loss A/C need to be ascertains. Accordingly, we restore the issue to the file of AO with a direction to re-adjudicate the issue after affording a reasonable opportunity of being heard to the assessee. Needless to say, that the assessee shall file all the necessary documents and evidences in support of its stand before the AO. Accordingly, appeal is allowed for statistical purposes.
In result, appeal of the assessee is allowed for statistical purposes.
Order pronounced on 19.11.2025