ITAT: Not Included Tax Paid on Rent, Form 26AS Can Be Corrected

The Ahmedabad Bench of Income Tax Appellate Tribunal ( ITAT ) stated that the blunder of containing service tax spent on rent which was in the form 26AS can be fixed.

Under Section 143(1) of the Income Tax Act 1961, taxpayer, Taraben Jayantilal Patel obtained the notice where the income through the house property was incurred at Rs 34,18,839 rather than Rs.32,86,544 as calculated via the petitioner.

The petitioner has furnished a rectification application against the intimation order which elaborates on the causes that the petitioner has calculated income via house property without service tax while Form 26AS was included in service tax. As per that the order of calculated income of Rs 37,12,839 rather than Rs 32,86,544/- was given.

On the behalf of the petitioner, Parin Shah, the order would merely comply with the yearly value of the property that comprises the service tax on the grounds of form 26AS. The petitioner mentioned that the rent obtained post diminishing the service tax as the service tax was levied to be paid via the tenant.

The tribunal bench of Pramod M Jagtap (Vice President) and Mahumita Roy (Judicial Member) reduced the addition and stated that the same mistakes can be fixed seeing that,

“Service tax was included in the income from house property computed by the assessee but the amount mentioned in Form 26AS in inclusive of service tax. This is because the reason that assessee has deducted TDS on rent inclusive of service tax instead of exclusive service tax which has been duly reconciled by the assessee with sufficient evidence adduced before the authorities below as it appears from materials available before us, in our considered opinion, which has not been taken into consideration with its proper perspective.”

Case Title	Smt. Taraben Jayantilal Patel vs DCIT-CPC
Citation	I.T.A. No. 194/Ahd/2020
Date	31.10.2022
Appellant by	Shri Parin Shah, A.R.
Respondent by	Shri V. K. Mangla, Sr. D.R.
Ahmedabad ITAT	Read Order