The Delhi bench of the Income Tax Appellate Tribunal ( ITAT ) has deleted the addition of Income from other sources due to duplicate entries found in Form 26AS.
The individual in question was a non-resident who earned salary income in India during the Assessment Year 2013-14 through employment with M/s Greenply Industries Limited. Concerning Julius Gerardus Theodorus Van Wijck, the employer. Notably, the individual did not file an income tax return for the relevant assessment year.
The Assessing Officer ( AO ) observed that the individual received a sum of Rs. 94, 03, 473/- from M/s Greenply Industries Ltd. Based on this observation, the AO reopened the case under section 147 of the Income Tax Act, 1961, after recording reasons and obtaining necessary approval from the competent authority to issue notice under section 148, of the Income Tax Act, 1961, dated 30.03.2021.
The Assessing Officer ( AO ) issued a final Show Cause Notice ( SCN ) dated 03.03.2022, requiring the assessee to submit details and supporting documents regarding receipts totaling Rs. 94,03,473 from their employer. However, despite this request, the assessee failed to file an Income Tax Return ( ITR ), prompting the AO to proceed with the assessment under section 144 of the Income Tax Act, 1961, based on the available details and documents on record.
The AO noted that a notice under section 143(6) of the Income Tax Act, 1961, was issued to M/s Greenply Industries Ltd. on 23.03.2022 to ascertain the nature of the receipts or transactions. According to the response from M/s Greenply Industries Ltd., the assessee received a salary amounting to Rs. 66,77,248 during the relevant year. The assessee contended that the entire amount of Rs. 94,03,473 was attributable to salary provided by M/s Greenply Industries Ltd., stating that only Rs. 66,77,248 had been received as salary from the employer.
Dispute Resolution Panel ( DRP ) determined that the Assessing Officer ( AO ) had given the assessee multiple chances to clarify or substantiate the receipts from their employer as shown in the assessee’s Form 26AS. Despite these repeated notices from the AO, the assessee did not respond. The AO possessed the document, Form 26AS, which indicated that the assessee had received a total of Rs. 94,03,473 from their employer.
Consequently, the DRP concluded that it was the responsibility of the assessee to provide the necessary explanation regarding these receipts, which the assessee failed to do despite the numerous opportunities provided by the AO.
The bench observed that after a thorough examination of Form 26AS, it came to attention that several duplicate entries were present.
The two member bench of the tribunal comprising Saktijit Dey ( Vice president ) and Dr. B.R.R. Kumar ( Accountant member ) made the decision to remove the addition of Rs. 27,26,225 under the category of “income from other sources.
Furthermore, the bench instructed that the income from salary be assessed at Rs. 66,77,248, and the corresponding Tax Deducted at Source ( TDS ) credit, as per Form 16, amounting to Rs. 18,57,271, should be provided. The Junior Accounts Officer ( JAO ) was assigned the responsibility to verify the figures and grant the relief as directed.
In the result, the appeal of the assessee was allowed.
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