Smt. Taraben Jayantilal Patel Vs DCIT-CPC (ITAT Ahmedabad)
The appellant has computed ‘income from house property’ excluding of service tax whereas in Form 26AS it is inclusive of service tax. The order dated 06.08.2019 upon rectification under Section 154 of the Act, the income under the head ‘income from house property’ was computed at Rs.37,12,839/- instead of Rs.32,86,544/- as computed by the appellant.
This issue is, thus, nothing but the difference in regard to the service tax computed by the assessee and shown in Form 26AS by the assessee. In fact, service tax was included in the income from house property computed by the assessee but the amount mentioned in Form 26AS in inclusive of service tax. This is because the reason that assessee has deducted TDS on rent inclusive of service tax instead of exclusive service tax which has been duly reconciled by the assessee with sufficient evidence adduced before the authorities below as it appears from materials available before us, in our considered opinion, which has not been taken into consideration with its proper perspective. Thus, the addition, is not found to be sustainable. Hence, deleted.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
The instant appeal filed by the assessee is directed against the order dated 09.01.2020 passed by the Ld. Commissioner of Income Tax (Appeals) – 3, Ahmedabad (in short ‘CIT(A)’) arising out of the intimation under Section 143(1) of the Income Tax Act, 1961 (hereinafter referred as to ‘the Act’) dated 06.08.2019 passed by the DCIT(CPC), Bengaluru for Assessment Year 201718.
2. The assessee has filed its return of income on 11.10.2017 declaring total income of Rs.1,71,74,560/-. The assessee received notice under Section 143(1)(a) of the Act on 08.10.2018. Further received intimation under Section 143(1) of the Act on 24.01.2019, whereby and whereunder, the computation of income under the head ‘income from house property’ was made at Rs.34,18,839/- instead of Rs.32,86,544/- as computed by the appellant. A rectification application thereafter was filed by the assessee against the intimation order under Section 143(1) of the Act explaining the reason of difference. The appellant has computed ‘income from house property’ excluding of service tax whereas in Form 26AS it is inclusive of service tax. The order dated 06.08.2019 upon rectification under Section 154 of the Act, the income under the head ‘income from house property’ was computed at Rs.37,12,839/- instead of Rs.32,86,544/- as computed by the appellant. The assessee in regard to the addition of Rs.4,26,295/- submitted the following before the Ld. CIT(A):
