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Income Tax Appellate Tribunal, CHANDIGARH BENCHES ‘A’, CHANDIGARH
Before: SHRI SANJAY GARG& Ms. ANNAPURNA GUPTA
Per Sanjay Garg, Judicial Member:
The present appeal has been preferred by the assessee against the order of the Commissioner of Income Tax (Appeals), [hereinafter referred to as CIT(A)]-2, Gurgaon dated 01.12.2016.
The sole issue raised by the assessee in this appeal is relating to the addition made by the Assessing officer in relation to certain receipts shown credited to the assessee in Form No. 26AS but the same being not reflected into the account of the assessee. The
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Assessing officer made the addition by estimating 15% profits on the
said receipts.
In appeal before CIT(A), the assessee submitted that the
assessee in fact had not received any amount shown to be credited in
Form No. 26AS. The assessee also produced letters of the concerned
parties stating that the said credits, in fact, did not belong to the
assessee. The assessee also submitted that the said entries which were
inadvertently made by those parties had been reversed. The assessee
also submitted new / rectified Form 26AS to show that the entries had
been reversed. Further, it was submitted that if other parties had
made wrong entries in their accounts in respect of any payment made
to the assessee, the assessee should not be penalized in that respect.
The Ld. CIT(A) did not agree to the above contention of the
assessee observing that the assessee had not produced sufficient
evidence on the file to prove that the entries made by the parties
showing credits to the assessee were on account of inadvertent
mistake. Being aggrieved by the above order of the CIT(A), the
assessee has come in appeal before us.
We have heard the rival submissions. Admittedly, the Assessing
officer did not find any defect into the accounts of the assessee viz a
viz bank account of the assessee. The entries found in form in 26AS
had not been made by the assessee but by the other parties who had
shown certain payments made to the assessee. However, the plea of
the assessee is that he has not received any such payments from the
said parties. The assessee also produced letters and revised 26AS
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form before the CIT(A) to show that no such payments were received
by the assessee and that the original entries were made due to some
inadvertent errors. In our view, interest of justice will be well served
if the issue is restored to the file of the Assessing officer to examine
it afresh. If the assessee will be able to show that he had not
received any such credits, but shown in form 26AS and further proves
that the entries have been reversed by the respective parties, then in
our view, no such additions will be warranted on this issue. The
Assessing officer is accordingly direct to re-examine the issue and
pass a afresh order on this issue in view of our directions given
above.
In the result, the appeal of the assessee is treated as allowed for
statistical purposes.
Order pronounced in the Open Court
Sd/- Sd/- (ANNAPURNA GUPTA) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated : 27.03.2018 Rkk
Copy to: 1. The Appellant 2. The Respondent 3. The CIT 4. The CIT(A) 5. The DR