Dharmendra Sharma Vs Jurisdictional Assessing Officer (ITAT Agra)
Form 26AS alone cannot tax Rs.3.65 Crore— Mining Receipts Mismatch: Tribunal Restores Case to AO for Full Re-Verification
Assessee, a mining licence holder, declared income of Rs.4,91,830. Form 26AS reflected mining receipts of Rs.3,65,25,000 with TCS of Rs.7,30,500 collected by Collector, Gwalior. AO treated entire Rs.3.65 crore as business income solely based on Form 26AS, ignoring Assessee’s explanation that mining rights were sub-leased to various crusher units, royalty was actually received at only Rs.18,68,234, & mining department had wrongly reported figures in their return. NFAC agreed with AO in principle but applied 8% NP rate u/s 44AD on Rs.3.65 crore instead of taxing full receipts.
Tribunal noted that AO never verified Assessee’s business model, royalty sharing, or correctness of departmental reporting & simply lifted figures from Form 26AS. Since Assessee’s explanation required factual verification of lease arrangements, royalty receipts, & TCS mechanism, Tribunal set aside NFAC’s decision & restored issue to AO for de-novo adjudication with liberty to Assessee to file fresh evidence.
Second issue concerned cash deposits of Rs.23,10,500. AO added entire amount u/s 69A; NFAC upheld addition. Before Tribunal, Assessee filed crucial additional evidences:
- Registered Supplementary Partnership Deed attaching Assessee’s lease rights to firm ,
- Date-wise cash deposit with source mapping ,
- Royalty ledger in firm’s books.
Tribunal held these to be vital & admissible & restored cash-deposit issue also to AO for full verification with proper opportunity.
