Manish Kumar Vijay Vs ITO (ITAT Jaipur)
Form 26AS is not gospel truth – It is only a third-party information source, subject to errors-Wrong PAN Entry in Form 26AS – ITAT Jaipur deletes addition
Additions solely based on 26AS data without factual verification are unsustainable- Assessee’s timely evidence of rectification and absence of TDS claim strengthens the defence.
Assessee , engaged in lighting & decoration services, filed his return of income under the presumptive taxation scheme of section 44AD, declaring turnover of ₹9,01,460 & net income of ₹3,46,310. CPC, Bengaluru, while processing the return u/s 143(1), noticed TDS credits in Form 26AS u/s 194C amounting to ₹5,97,156 attributed to Urban Improvement Trust (UIT), Kota. Considering these as part of assessee’s turnover, CPC enhanced the turnover & computed additional presumptive income of ₹2,88,304. Rectification Application u/s 154 was rejected by CPC, holding that the addition was based on available 26AS data. CIT(A) dismissed the appeal primarily for non-compliance with hearing notices & for want of documentary proof.
Assessee argued that the entire dispute relates to the addition based on the Form no. 26As wherein some entries were refelected wrongly under the PAN number of Assessee & now those entries are not filed in the corrected Form no. 26AS & therefore Assessee did not appear before CIT(A) in the interest of the substantial justice the matter be decided based on the evidence placed on record. Since the corrected form was already available on record vide 154 application the same was not additional evidence the relief be granted to Assessee .
