Loading judgment…
Facts
The assessee's appeal was against the CIT(A)'s order which restricted an addition made by the AO for Rs.5,92,500/- to Rs.2,42,500/-. The addition was on account of a mismatch between TDS reflected in Form 26AS and the assessee's income/books of account.
Held
The Tribunal found that the mismatch was solely due to the difference in the year of recognition of profit/receipts between the assessee and the TDS deductor. The reasons provided by the assessee were deemed plausible.
Key Issues
Whether the mismatch in TDS reflected in Form 26AS and the assessee's books of account is attributable to the difference in the year of recognition of profit/receipts.
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH “SMC”, DELHI
(A.Y.2018-19) Nitesh Ranjan, Flat No. 602, Plot No.18A, Media Cooerative Group Housing Society Ltd. Sector-7, Dwarka, Delhi 110075 ...... अपीलार्थी/Appellant PAN: AELPR-5928-R बिाम Vs. Deputy Commissioner of Income Tax, ..... प्रनिवादी/Respondent CR Building, IP Estate, Delhi 110002 अपीलार्थी द्वारा/Appellant by : S/Shri Anuj Aggarwal, Chartered Accountant & Vishal Sharma, प्रधििािीद्वारा/Respondent by : Shri Manoj Kumar, Sr. DR सुिवाई की निथर्थ/ Date of hearing : 15/12/2025 घोषणा की निथर्थ/ Date of pronouncement : 15/12/2025 आदेश/ORDER PER VIKAS AWASTHY, JM:
This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [in short ‘the CIT(A)’] dated 12.09.2025, for Assessment Year 2018-19.
Shri Anuj Aggarwal, appearing on behalf of the assessee submitted that the assessee is carrying on sole proprietorship business under the name & style of M/s. Ascentiq Engineers & Consultant. In the impugned assessment year, the Assessing Officer (AO) inter alia made addition of Rs.5,92,500/- on account of mismatch in Form No. 26AS and the receipts reflected in the return of income/books of account. In First Appellate proceedings, the CIT(A) granted part relief to the assessee and restricted the addition to Rs.2,42,500/-. The assessee in appeal has assailed the addition sustained by the CIT(A). The ld. Counsel submits that the difference in TDS claimed and the amount reflected in Form No. 26AS is only on account of difference in the year of recognition of profit. The difference is primarily on account of four reasons i.e.:
(i) bills were raised and booked by the assessee in FY 2018-19; however, TDS credit was reflected in Form No.26AS in FY 2017-18. The income was shown in FY 2018-19 and corresponding TDS credit was carried forward to AY 2018- 19; (ii) Bills were raised and booked by the appellant in FY 2018-19, whereas, the TDS credit was not reflected in Form No. 26AA until the date of filing ITR for FY 2017-18. Hence, the assessee could not carry forward TDS to FY 2018-19. Hence, the income was shown in FY 2018-19 however, no TDS credit was allowed in FY 2017-18 or 2018-19; (iii) Bills were raised and profits were booked by the appellant in FY 2016-17, whereas TDS credit was reflected in Form No. 26AS for FY 2017-18. Hence, the income was shown in FY 2016-17, and no TDS was claimed in FY 2016-17 and2017-18; (iv) Bills were raised and profit was booked in FY 2018-19, whereas, TDS on the same was not deducted by the party. Hence, the income was shown in FY 2018-19 and no TDS was claimed in any year.
The assessee furnished party-wise reconciliation statement at pages 26 and 27 of the paper book.
4 Both sides heard. The short issue in the instant appeal is with regard to mismatch of TDS reflected in Form no. 26AS and the receipts reflected by the assessee in his books of account. The assessee has filed explanation for the mismatch and has also placed on record reconciliation statement at pages 26 and 27 of the paper book. I find that the mismatch in Form No. 26AS and books of the assessee is solely on account of difference in year of recognition of profit/receipts in the books of the assessee and the deductor of TDS. I find the reason given by the assessee for mismatch, plausible, hence, the matter is restored to the AO for the limited purpose of verification of reconciliation statement filed by the assessee.
In the result, appeal of the assesee is allowed in the terms aforesaid.
Order pronounced in the open court on Monday the 15th day of December, 2025.