Case Law Details
Vijay Pal Jhamb Vs ITO (ITAT Chandigarh)
Ld. AR submitted that only real income in the hands of the assessee can be brought to tax and though the assessee couldn’t submit the reconciliation as sought before the lower authorities, all the documents and ledger accounts are on record and the assessee is in position to reconcile the difference between the contract receipts shown in the return of income and as per Form No.26AS from its ledger accounts and one more opportunity may be granted to the assessee in this regard in the interest of substantial justice.
ITAT held that the assessee deserves one more opportunity to reconcile the difference between the contract receipts as shown in the return of income and as per Form No.26AS taking into consideration the fact that the Ld. AR has stated at the Bar that the assessee is in position to reconcile the difference and in fact, there are no differences in the contract receipts which have been offered in the return of income as contractually accrued to him and receipts as per Form 26AS which the assessee can demonstrate through his books of accounts and supporting documentation once an opportunity is provided to the assessee. Therefore, taking into consideration the undertaking so given by the Ld. AR and with the understanding that the assessee shall cooperate and shall not abuse the opportunity so provided, the matter is set aside to the file of the AO to verify the differences after providing reasonable opportunity of hearing to the assessee. The assessee is also directed to cooperate in the timely completion of the proceedings, as so directed by the AO. In the event the assessee fails to avail of this opportunity and/or fails to offer necessary explanation to reconcile the differences to the satisfaction of the AO, the AO is at liberty to decide the matter as per law.
FULL TEXT OF THE ORDER OF ITAT CHANDIGARH
This is an appeal filed by the assessee against the order of Learned Commissioner of Income Tax (Appeals), Karnal [in short the ‘Ld. CIT(A)’] passed u/s 250 of the Income Tax Act, 1961 (in short ‘the Act’) dated 03.07.2020 relating to assessment year 2016-17, wherein the assessee has taken the following grounds of appeal:
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