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Income Tax Appellate Tribunal, INDORE SMC BENCH, INDORE
This appeal by the Assessee is directed against the order dated 26.10.2023 of Commissioner of Income Tax(Appeal), National Faceless Appeal Centre, Delhi for Assessment Year 2012-13. The assessee has raised following grounds of appeal:
“On the facts and in the circumstances of the cases:
1. 1. That, the appellate order passed by Ld. CIT-A is erroneous on the facts and in law.
2. That, the appellate order passed by Ld. CIT-A, is contrary to the weight of evidence on record, perverse, unjustified and, therefore the additions are liable to be struck down.
SMC-Manish Choudhary Page 2 of 4 3. That, the CIT-A erred not to follow the principal of natural justice as Ld. CIT-A passed an ex-parte order without sufficient opportunity of being heard, as all the notice as stated in the order are not duly served to the assessee.
That, the Ld. CIT-A erred in confirming the addition made by the Ld. AO to the tune of Rs. 15,04,242/- as against the actual salary income of Rs. 9,44,332/-.
That, the Ld. CIT-A erred in confirming the addition made by the Ld. AO to the tune of Rs. 4,52,463/-on account of payment made against credit card bills ignoring the fact that such payment was in fact made from the salary income earned by the assessee and from past savings, thus addition so made is liable to be deleted.
6. That, the Ld. CIT-A erred in confirming the action of the Ld. AO of not considering the TDS which has been duly deducted and paid by the employer as reflecting in form No. 16 as well as in form no. 26AS of the assessee amounting to Rs. 73,212/- while making the subject additions.”
At the time of hearing Ld. AR of the assessee has submitted that while passing ex-parte order u/s 144 r.w. section 147 of the Act the AO has made addition on account of salary income by considering excess reporting of salary in form 26AS. He has pointed out that the said addition made by the AO on the basis of incorrect salary details reported in form 26AS has been confirmed by the CIT(A) while passing ex-parte order. He has further submitted that the salary income reported in form 26AS was subsequently rectified by the employer but the same has not been considered by the AO or CIT(A). Hence, he has pleaded that the matter may be set aside to the record of the AO for fresh adjudication after considering correct amount of salary.
On the other hand, ld. DR has not raised any serious objection if matter is remanded to the record of the AO for fresh adjudication. Page 2 of 4
SMC-Manish Choudhary Page 3 of 4 4. I have considered the rival submission as well as relevant material on record. The AO while passing assessment order u/s 144 r.w. section 147 has made an addition on account of payment against credit card bills of Rs.4,52,463/- and Rs.15,04,242/- on account of undisclosed salary income as reflected in the form 26AS. The said addition made by the AO has been confirmed by the CIT(A) while passing impugned order. The CIT(A) has noted that despite various notices the assessee has not filed any reply except seeking adjournment in response to one of the notices. Therefore, the CIT(A) has confirmed the additions made by the AO due to non- participation of the assessee in the proceedings. Ld. AR of the assessee has submitted that the AO has made the addition of undisclosed salary income by considering incorrect details of salary reported in 26AS by the employer which was subsequently rectified but the same was not considered by the AO as well as CIT(A). Since the issue of discrepancies in the salary income disclosed by the assessee and reported in 26AS required verification to ascertain the actual and correct amount of salary credited to the account of assessee after rectification made by the employer in the TDS statement/TDS returns. Further the assessee is also required to explain the source of payment of credit card bills. Accordingly in the facts and circumstances of the case and in the interest of justice the impugned order of the CIT(A) is set aside and the matter is remanded to the record of the AO for fresh adjudication after verification and consideration of relevant details and record to be filed by the assessee as well as the correct amount of salary Page 3 of 4
SMC-Manish Choudhary Page 4 of 4 as per the rectified details in form 26AS. Needless to say the assessee be given an appropriate opportunity of hearing before passing fresh order
In the result, the appeal of assesse is allowed for statistical purposes.
Order pronounced in the open court on conclusion of hearing on 19.02.2024.