Addition on Discrepancy between Gross Receipts Shown in Income Tax Return and amount deducted as TDS or TCS: ITAT remits back matter [Read Order]

The Income Tax Appellate Tribunal (ITAT), Pune Bench remitted the matter back to the file as the addition was made on discrepancy between gross receipts shown in return of income and amount deducted as TDS or TCS.

The appellant, Sanjay Dayal is an individual deriving income under the head “Income from other sources”. The return of income for the assessment year 2017-18 was filed on 17.07.2017 disclosing total income of Rs.1,99,520. The said return of income was processed vide Intimation dated 15.03.2019 passed under section 143(3) of the Income Tax Act, 1961 making addition on account of discrepancy between the gross receipts shown in the return of income and Form No.26AS.

Being aggrieved by the said Intimation, an appeal was filed before the CIT(A) by submitting that no addition on account of discrepancy between the gross receipts shown in the return of income and Form No.26AS is required to be made for the reason that the appellant had been offering the interest accrued on Government of India Bonds on accrual basis each year, during the period of assessment years 2011-12 to 2017-18, the appellant had offered income of Rs.28,35,926/- and the balance amount interest income of Rs.1,69,074/- was offered to tax during the year under consideration and no addition was required.

The Bench consisting of Inturi Rama Rao, Accountant Member and SS Viswanethra Ravi, Judicial Member held that “The issue in appeal before the CIT(A), NFCA, Delhi is with regard to the addition on account of discrepancy between the gross receipts shown in the return of income and Form No.26AS. However, from perusal of the order passed by the CIT(A), NFCA, Delhi, we find that he had considered altogether a different issue which does not form part of the subject-matter of appeal. Therefore, we remit the issue to the file of the CIT(A), NFAC, Delhi with direction to decide the issue in appeal in accordance with law.”

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