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Income Tax Appellate Tribunal, ‘SMC’ ‘C’ 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 15.12.2016 in for the assessment year 2012-13 passed U/s.250(6) r.w.s.143(3) of the Act.
The assessee has raised several grounds in his appeal, however the crux of the lone issue argued before me is that the Ld.AO as well as the Ld.CIT(A) has erroneously held the amount of Rs.5,16,398/- reflected in Form 26AS as the income of the assessee, when the assessee had not received any such income.
The brief facts of the case are that the assessee is an individual engaged in the business of trading in Iron & Steel, filed his return of income for the assessment year 2012-13 on 18.09.2012 admitting income of Rs.11,23,220/-. The case was selected for scrutiny under CASS and finally order was passed U/s.143(3) of the Act on 31.03.2015, wherein the Ld.AO added Rs.5,16,398/- to the income of the assessee based on the form 26AS and also disallowed an amount of Rs.72,000/- as allowable deduction.
During the course of assessment proceedings, the Ld.AO noticed an amount of Rs.5,16,398/- mentioned as income of the assessee in the Form 26AS furnished by him, however the same was not reflected in the return of income. It was further revealed that the tax deductor is Under-Secretary to Accounts, Dept. of General Administration, TAN No. PTNU10359. Since the assessee has not disclosed the amount in his return of income, the Ld.AO made addition which was subsequently confirmed by the Ld.CIT(A).
Before me, the Ld.AR submitted that the assessee has not received any such amount from anyone though the amount was stated in Form 26AS and tax was deducted at source by the payer.
The Ld.AR further clarified that the assessee had also not claimed the benefit of the tax credited to his account as mentioned in Form 26AS. The Ld.AR further submitted that the assessee had communicated to the tax deductor viz., Under Secretary to Accounts, Dept. of General Administration, but the assessee did not received any reply from them. With the above submission, the Ld.AR pleaded that the matter may be remitted back to the file of Ld.AO, in order to verify the actual recipient of the income and thereafter pass orders in accordance with law. The Ld.DR could not successfully controvert to the submission of the Ld.AR.
I have heard the rival submissions and carefully perused the materials on record. From the facts of the case, it is apparent that the Ld.AO has not verified the actual recipient of the income but solely relied on the Form 26AS which the assessee claims to be erroneous. In such situations, it is the duty of the Ld.AO to make proper verification as to who is the actual recipient of the income and thereafter proceed to pass order in accordance with merits.
4 Therefore in the interest of justice, I hereby remit the matter to the file of Ld.AO with directions to verify the actual recipient of the income and thereafter pass order in accordance with law and merits.
In the result, appeal of the assessee is allowed for statistical purposes.
Order pronounced on the 08th August, 2017 at Chennai.