What did the Tribunal hold?

The Tribunal, noting that the assessee's counsel failed to produce the reconciliation statement before it, decided to give the assessee another opportunity. The matter was set aside to the AO for fresh adjudication.

The Revenue appealed against the deletion of an addition made by the AO on account of a mismatch between the income tax return (Form 26AS) and the audited financial statement. The AO had treated this mismatch as undisclosed income.

What were the issues?

Whether the CIT(A) was correct in deleting the addition made by the AO due to a mismatch in Form 26AS and audited financials, and whether the assessee should be given another opportunity to reconcile the figures.

ITO vs Shri Altafhusen Mahemudul Hasan… | ITAT Ahmedabad 2022

Income Tax Appellate Tribunal, ‘’ C’’ BENCH, AHMEDABAD

Before: SHRI WASEEM AHMED & SHRI T.R. SENTHIL KUMAR

Hearing: 28/07/2022Pronounced: 12/08/2022

आदेश/O R D E R

PER WASEEM AHMED, ACCOUNTANT MEMBER:

The captioned appeal has been filed at the instance of the Revenue against the order of the Learned Commissioner of Income (Appeals)-2, Ahmedabad dated 30/03/2017 arising in the matter of assessment order passed under s. 144 of the Income Tax Act, 1961 (here-in-after referred to as "the Act") relevant to the Assessment Year 2009-10.

The only issue raised by the assessee is that the Ld. CIT(A) erred in deleting the addition made by the AO for Rs. 1,93,09,502/- on account of mismatch in the income tax return in form 26AS vis-à-vis Audited Financial Statement. Thus the AO treated the same as undisclosed income and added to the total income of the assessee.

Aggrieved assessee preferred an appeal to the learned CIT-A who has deleted the addition made by the AO.

Being aggrieved by the order of the learned CIT-A the Revenue is in appeal before us.

Both the Ld. DR and the Ld. AR vehemently supported the order of the authorities below.

We have heard the rival contention of both the parties and perused the materials available on record. From the preceding discussion, we note that the Ld. CIT(A) has deleted the addition made by the AO after making the reference to the re-conciliation statement filed by the assessee with respect to the freight income shown in the Financial Statement vis-à-vis in form 26AS.

6.1 At the time of hearing, a query was raised to the ld. Counsel for the assessee to draw our attention on the re-conciliation statement before the Ld. CIT-A but Ld. AR failed to filed the same. However, ld. AR requested before us to set-aside the issue to the file of the AO for a fresh adjudication and further assured to file the re- conciliation statement before him.

6.2 On the other hand the Ld. DR raised no objection if the matter is set aside to the file of AO for fresh adjudication as per the provision of law.

6.3 In view of the above, in the interest justice and fair play we are inclined to give one more opportunity to the assessee to reconcile the difference of freight income as discussed above. Hence, the ground of appeal filed by the Revenue is allowed for statistical purposes.

In the result, the appeal filed by the revenue is allowed for statistical purposes.

Order pronounced in the Court on 12/08/2022 at Ahmedabad.

THE INCOME TAX OFFICER, WARD-3(2)(6), AHMEDABAD vs. SHRI ALTAFHUSEN MAHEMUDUL HASAN SIDDIKI, AHMEDABAD

What did the Tribunal hold?

What were the facts?

What were the issues?

Which sections of the Income-tax Act were involved?

Recent GST High Court judgments