Ground No.1 is relating to addition of Rs.4,49,440/- on account of AIR information. The assessee is a registered partnership firm of advocates and solicitors. The AIR information showed that the assessee had received professional/technical fees from various persons aggregating to Rs.1,39,15,584/- which the Assessing Officer (hereinafter referred to as the AO) required the assessee to reconcile. The assessee reconciled major portion of the amount but could not reconcile the amount of Rs.4,49,440/- allegedly received from Allied Digital Services Ltd. The assessee stated before the AO that it had never received above amount. But the AO did not agree with the contention of the assessee and made the addition.
In appeal before the Ld. CIT(A), the assessee submitted bank statements of its all accounts. It was further submitted that only Rs.1,00,000/- was received during the year under consideration from Allied Digital Services Ltd. and a confirmation from the said party in this respect was also filed. It was stated before the Ld. CIT(A) that AIR information might be erroneous on account of quoting wrong PAN or wrong submission. The Ld. CIT(A), however, held that since the assessee had failed to reconcile the receipts from Allied Digital Services Ltd., hence the AO was justified in making the addition. He also observed that the confirmation of Rs. 1,00,000/- did not tally with the dates of receipts mentioned in the AIR information.
We have heard the Ld. representatives of both the parties and have also gone through the records. It is the case of the assessee that it had received only 1,00,000/- from Allied Digital Services Ltd. However, as per the AIR information, the assessee had received Rs.4,49,440/- from the said party. There is no reference of amount of Rs.1,00,000/- in the AIR information, rather, the detail of amount has been given as Rs.3,00,000/- on 02.01.08 and Rs.1.49 lakh on 24.03.08.
It has been held time and again by this Tribunal that the additions made solely on the basis of AIR information are not sustainable in the eyes of the If the assessee denies that he is in receipt of income from a particular source, it is for the AO to prove that the assessee has received income as the assessee cannot prove the negative. Reliance can be placed in this respect on the decision of the Tribunal in the case of “DCIT vs. Shree G. Selva Kumar” in ITA No.868/Bang/2009 decided on 22.10.10 and another case in the case of “Aarti Raman vs. DCIT” in ITA No.245/Bang/2012 decided on 05.10.12.
Representatives of both the parties have agreed before us that the issue be restored to the file of the AO for consideration afresh in this respect. We accordingly restore this issue to the file of the AO to consider the reply of the assessee as well as confirmation from Allied Digital Services Ltd. vis-à-vis the AIR information and decide the issue in accordance with the law.