ARVIND BALONI,MOHALI vs. ITO, MOHALI

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.

ITA NO.10/Chd/2017- Arvind Baloni, Mohali. 2

Assessing officer made the addition by estimating 15% profits on the

said receipts.

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.

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.

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

ITA NO.10/Chd/2017- Arvind Baloni, Mohali. 3

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.

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