Nitesh Ranjan Vs DCIT (ITAT Delhi)
26AS Mismatch Due to Timing Difference Not Income Escapement: Year of TDS Credit vs Year of Income- ITAT Allows Appeal for Limited Verification
Delhi ITAT ‘SMC’ Bench in Nitesh Ranjan vs DCIT (ITA No.7135/Del/2025, AY 2018-19, order dated 15-12-2025) allowed the assessee’s appeal for limited purposes, holding that mismatch between Form 26AS and receipts shown in books, arising purely due to difference in year of recognition, cannot be straightaway treated as undisclosed income.
Assessee, a sole proprietor carrying on business as M/s Ascentiq Engineers & Consultant, faced an addition of ₹5.92 lakh on account of mismatch between receipts reflected in books and TDS credits appearing in Form 26AS. CIT(A) granted partial relief and restricted the addition to ₹2.42 lakh, which was challenged before ITAT.
Before the Tribunal, assessee furnished a detailed party-wise reconciliation, explaining that the mismatch arose due to timing differences, including cases where:
– income was booked in one FY but TDS appeared in another,
– TDS was not reflected in Form 26AS up to the date of filing return,
– income was offered in earlier years though TDS credit appeared later, and
– TDS was not deducted by the payer despite income being offered to tax.
ITAT found the explanation prima facie plausible and observed that the issue involved difference in accounting/recognition timing between deductor and deductee, rather than suppression of receipts. Accordingly, Tribunal restored the matter to the AO solely for verification of the reconciliation statement filed by the assessee and directed that no addition be sustained if reconciliation is found correct.
The appeal was thus allowed for verification purposes.
Form 26AS mismatch by itself is not income. Where assessee demonstrates that the difference is only due to timing mismatch in recognition of income and TDS, the matter requires verification—not mechanical addition
FULL TEXT OF THE ORDER OF ITAT DELHI
