Dattani Construction Vs ITO (ITAT Mumbai)
The appeal before the Income Tax Appellate Tribunal (ITAT), Mumbai Bench “D”, pertained to Assessment Year 2011–12 and arose from an order passed by the Commissioner of Income-tax (Appeals), National Faceless Appeal Centre. The assessee, a partnership firm engaged in real estate development, challenged multiple additions and disallowances made during assessment proceedings
The original return of income was filed on 30 September 2011 declaring total income of ₹4,64,557. The assessment was completed under section 143(3) of the Income-tax Act, 1961, on 21 March 2014, wherein the Assessing Officer (AO) made additions relating to differences in receipts reflected in Form 26AS and disallowed certain expenses by capitalising them as Capital Work-in-Progress (CWIP). On appeal, the CIT(A) granted partial relief, following which the assessee approached the ITAT
At the outset, the assessee did not press grounds relating to reopening of assessment, treatment of compensation income, and disallowance of general administrative expenses. These grounds were dismissed as infructuous by the Tribunal
Difference in Receipts as per Form 26AS
One of the key issues concerned an addition of ₹4,05,826 made on account of alleged undisclosed income based on Form 26AS. As per Form 26AS, total receipts of ₹10,48,326 were reflected, comprising rental income from two parties and interest income from another party, along with corresponding TDS. However, the assessee had disclosed only ₹6,42,500 as miscellaneous income in its return.
