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Facts
The assessee filed a return of income based on Form 26AS which showed contract work. However, the assessee claimed no work was done, and the West Bengal State Electricity Board confirmed this. Despite this, the AO added the contract amount as income. The assessee later filed a revised computation before the AO, which was not considered.
Held
The Tribunal noted that the West Bengal State Electricity Board had made an error in TDS deduction and credit. The assessee had filed a revised computation after the time for revised return had expired. In the interest of justice, the issues were restored to the AO for readjudication, considering the revised computation.
Key Issues
Whether the AO was justified in making an addition based on Form 26AS when the assessee claimed no work was done, and whether a revised computation filed after the due date should be considered.
Sections Cited
133(6), 140
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Income Tax Appellate Tribunal, “SMC” BENCH KOLKATA
Before: SHRI GEORGE MATHAN
O R D E R This is an appeal filed by the assessee against the order of the ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi, dated 29.02.2024 for the Assessment Year 2018-2019.
Shri Soumitra Choudhury, ld.AR appeared on behalf of the assessee and Smt. Madhumita Das, ld. Sr.DR appeared on behalf of the revenue.
It was the submission by the ld. AR that that the assessee had on the basis of the Form 26AS filed his return of income. It was the submission that in the Form 26AS it was shown that the assessee had done certain contract work for West Bengal State Electricity Board Burdwan Division. It was the submission that, in fact, the assessee had not done any work. It was the submission that the West Bengal State Electricity Board Burdwan Division had also clarified before the AO in response to notice u/s.133(6) of the Act that the assessee has not done any work for them. However, the AO added the total contract amount as shown in the Form 26AS as income of the assessee. It was further submitted that the income offered by the assessee was also reduced from the said contract amount and the balance was treated as the expenditure of the assessee and the same was also disallowed. It was the submission that when the assessee has not done any work and the West Bengal State Electricity Board Burdwan Division had also clarified that the assessee and not done work and the mistake in the Form 26AS is on account of mistake committed therein, no addition was called for. It was further submission of the ld. AR that the assessee had also after recognizing the correction in the Form 26AS had filed a revised computation before the AO which has been extracted by the ld. CIT(A in page 7 of his order. It was the submission that this was not considered by the AO. It was the submission that the addition as made by the AO is liable to be deleted and the income of the assessee filed in the revised computation be accepted.
In reply, ld. Sr. DR vehemently relied on the order of the ld. AO and ld. CIT(A). It was the submission that no revised return filed by the assessee. It was the submission that in view of the provisions of Section 140 of the Act, the income cannot be recomputed unless revised return is filed.
I have considered the rival submissions. A perusal of the facts of the present case clearly shows that the West Bengal State Electricity Board Burdwan Division has committed an error in the deduction and the credit of the TDS in respect of the TAN. The assessee has unfortunately accepted the dictum of such mistake. This was also brought to the attention of the