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Income Tax Appellate Tribunal, ‘SMC’ ‘A’ BENCH, CHENNAI
Before: Shri A. Mohan Alankamony
आदेश / O R D E R
This appeal by the assessee is directed against the order passed by the Ld. Commissioner of Income Tax (Appeals)-5, Chennai dated 01.06.2017 in for the assessment year 2013-14 passed u/s.250(6) r.w.s.143(3) of the Act.
The assessee has raised several grounds in his appeal; however the cruxes of the issues are as follows:-
The Ld.CIT has erred in upholding the order of the Ld.AO
who had made addition of Rs.1,88,028/- due to difference between Form-16A and Form-26AS.
2. The Ld.CIT has erred in upholding the order of the Ld.AO
who had made addition of Rs.2,84,100/- under the head unexplained cash credits.
The brief facts of the case are that assessee is an individual earning salary income filed his return of income for the assessment year 2013-14 on 29.07.2013 declaring taxable income of Rs.3,05,469/-. Initially, the return was processed u/s.143(1) of the Act and thereafter the case was taken up for scrutiny and the assessment was completed u/s.143(3) of the Act vide order dated 17.03.2016 wherein the Ld.AO made addition on account of difference between Form No.16A & Form No.26AS amounting to Rs.1,88,028/- and the other addition being Rs.2,84,100/- as unexplained cash credits.
Ground No.1:- Addition of Rs. 1,88,028/- due to difference between Form No.16A & Form No.26AS.
During the course of scrutiny assessment it was observed by the Ld.AO that the assessee had admitted gross salary of Rs.4,47,696/-. However, it was noticed that as per Form No.26AS, the assessee has received salary of Rs.6,35,724/- the difference being Rs.1,88,028/-. Therefore, it was opined by the Ld.AO that the assessee has understated his salary income by Rs.1,88,028/- and therefore added the same to his income.
Before the Ld.CIT, the Ld.AR had made the following written submissions:
“The Employer issues Salary Certificates in form 16 with Part A & Part B to the Employee which is submitted to the Income tax Officer along with the Return of Income. In the said Form-I Part-A is the sum Total of Salary and TDS of the 4 quarters of Form 24-Q, Annexure-I and Part-B of the Form 16, which is the sum total of 4 quarters of form 24-Q annexure-I. The salary figure disclosed in Part-A of the Form 16 is only an estimated figure of each quarter while Part B of Form 16 is the final figure of Salary as computed at the end of the Financial Year along with TDS and Deductions and the Income Tax Officer instead of taking the figure as pert Part B of the Form 16, has taken this figure with the difference between the figures as per Part A and Part B of the Form 16, thereby an additions of Rs.1,88,028/- is made, though the Income Tax Officer has taken the TDS figure as per part-B of Form 16. This is on account of the fact that the employer while filing up quarterly return made a mistake in filing up the figure and this has been admitted by his letter, which has been obtained and filed with the Income Tax Officer. Thus the additions of Rs.1,88,028/- based on estimated figure in Part A of Form 16 is based on mistaken figure, is not at all warranted and should be deleted”.
However, the Ld.CIT rejected the submissions of the Ld.AR by observing as follows:
Form 16, Part A contains only that portion of the salary on which tax has been deducted whereas; Part B contains the total salary including the portion on which the tax has not been deducted. If there has been no tax deduction in one or more months, then the corresponding entry will not appear in Form 26AS and the same will be the impact in Form 16 Part A. Hence while filing the return one should refer to Form 16 - Part B.
Thereafter, the Ld.CIT confirmed the order of the Ld.AO and sustained the addition made by the Ld.AO for Rs.1,88,028/-.
Before us, the Ld.AR submitted that the assessee has subsequently obtained the revised Form No.26AS and place the same on record as Page No.7 of the Paper Book wherein the correct amount of salary received by the assessee of Rs.4,47,696/- is mentioned. It was, therefore, submitted that the matter may be remitted back to the file of the Ld.AO for verification and appropriate relief. The Ld.DR could not controvert to the submission of the Ld.AR.
We have heard the rival submissions and carefully perused the materials placed on record. On verifying the Paper Book Page No.7, we find that the assessee has placed on record the Form No.26AS, wherein the correct amount of salary received by the assessee of Rs.4,47,696/- is mentioned. Therefore agreeing with the request of the Ld.A.R, we hereby remit back the matter to the file of the Ld.AO in order to verify the authenticity of Form No.26AS submitted by the assessee and if the same is found to be genuine, delete the addition of Rs.1,88,028/- based on the revised Form No.26AS.
Ground No.2:- Addition on account of unexplained cash credits of Rs.2,84,100/-. During the course of scrutiny assessment, it was observed by the Ld.AO that the assessee had deposited Rs.2,10,000/- in his bank account on various dates which was not withdrawn from the other bank accounts of the assessee. Therefore, the Ld.AO held the amount to be unexplained cash credits of the assessee.
Similarly, discrepancies were observed w.r.t. Rs.64,100/- & Rs.10,000/- and the Ld.AO treated the same also as the unexplained cash credits of the assessee. Accordingly, the Ld.AO made addition of the aggregate amount of Rs.2,84,100/- as the unexplained cash credits in the hands of the assessee. On appeal, the Ld.CIT confirmed the order of the Ld.AO by agreeing with his view.
At the outset, we do not find any merit in the order of the Ld.Revenue Authorities on this issue. The assessee as well as his spouse is earning income and they have been filing their return of income. For the relevant assessment year the assessee alone has declared his salary income of Rs.4,47,696/-. In this situation, the accumulated income of the assessee along with his spouse can be genuinely presumed to be more than Rs.2,85,000/- which would explain the cash deposit made by the assessee in his bank account. Considering these facts and circumstances of the case, we are of the view that the addition of Rs.2,84,100/- on account of cash deposit made in the bank account of the assessee is not warranted. Therefore, we hereby direct the Ld.AO, to delete the addition of Rs.2,84,100/- made in the hands of the assessee towards unexplained cash credits.
In the result, the appeal of the assessee is partly allowed for statistical purposes. Order pronounced on the 28th December, 2017 at Chennai.