PARAMJIT SINGH SONI,NEW DELHI vs. ITO, WARD-33(4), NEW DELHI

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ITA 198/DEL/2019Status: DisposedITAT Delhi02 September 2019AY 2013-145 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the assessee failed to discharge the onus of proving that the interest income did not belong to him. Mere filing of an affidavit without documentary evidence or efforts to rectify Form 26AS was insufficient.

What were the facts?

The assessee received interest income of Rs. 13,65,958/- from M/s. Good Earth Eco Development Pvt. Ltd., as reflected in Form 26AS, but did not declare it in his return. The assessee claimed the income did not belong to him, but failed to provide supporting evidence or seek rectification of Form 26AS.

What were the issues?

Whether the assessee discharged the onus to prove that the interest income reflected in Form 26AS was not his income, and whether an affidavit alone is sufficient evidence.

Which sections of the Income-tax Act were involved?

Section 194A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCHES “SMC”: DELHI

Before: SHRI BHAVNESH SAINI

Hearing: 20.08.2019Pronounced: 02.09.2019

This appeal by Assessee has been directed against the Order of the Ld. CIT(A)-11, New Delhi, Dated 30.10.2018, for the A.Y. 2013-2014, challenging the Order of the Ld. CIT(A) in confirming the addition of Rs.13,65,958/- on account of interest received from M/s.

Good Earth Eco Development Pvt. Ltd., as appearing in Form 26AS as unexplained credit in the Bank Account.

2 ITA.No.198/Del./2019 Shri Paramjit Singh Soni, Delhi.

2.

This ground relates to addition of Rs.13,65,958/- on account of interest received from M/s. Good Earth Eco Development Pvt. Ltd., which appeared in Form No.26AS.

The A.O. observed from Form 26AS of the assessee that he had received interest of Rs.13,65,958/- from M/s. Good Earth Eco Development Pvt. Ltd., on which TDS of Rs.1,36,596/- under section 194A was deducted. However, assessee did not declare interest income in his return of income. The assessee claimed that interest income of Rs.1,36,596/- from M/s. Good Earth Eco Development Pvt. Ltd., did not belong to him. A.O. disallowed the amount in absence of any supporting evidence to the affidavit submitted by the assessee. The A.O. accordingly made the addition of the impugned amount on account of unexplained credit. During the course of appellate proceedings assessee submitted that the amount appearing in 26AS did not belong to assessee and all the necessary bank statements and affidavit denying ownership of the amount have been submitted before A.O. The A.O. in his report dated 03.10.2018 has stated that no additional

3 ITA.No.198/Del./2019 Shri Paramjit Singh Soni, Delhi. evidence regarding unexplained credit of the impugned amount as per 26AS has been submitted. The Ld. CIT(A) after considering the case of the assessee noted that when there is any credit in Form 26AS of assessee is appeared, burden to prove is on the assessee to establish his claim.

However, in this case onus upon assessee has not been discharged. The assessee has not submitted any documentary evidence to explain this issue, therefore, this addition was confirmed and this ground of appeal of assessee was dismissed.

3.

I have heard the Learned Representatives of both the parties. Learned Counsel for the Assessee reiterated the submissions made before the authorities below and submitted that assessee filed affidavit denying the receipt of interest. However, he was not able to establish if any efforts have been made by assessee to get rectification in Form 26AS at any stage. The assessment year under appeal is 2013-2014 and in case the assessee did not receive any interest from M/s. Good Earth Eco Development Pvt. Ltd., assessee was required to object to the same before the 4 ITA.No.198/Del./2019 Shri Paramjit Singh Soni, Delhi.

income tax authorities and should have taken steps for rectification of Form 26AS. However, the assessee admittedly did not make any effort to get it rectified. The silence of the assessee clearly show that the amount in question belong to the assessee. In the absence of any evidence on record, mere filing of an affidavit would not prove the case of assessee. No interference is called for in the matter. Appeal of assessee is accordingly dismissed.

4.

In the result, appeal of Assessee dismissed.

Order pronounced in the open Court.

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