ITAT Supports AO for Difference B/W 26AS and ITRs Failed by Assessee

When the assessee failed to show a discrepancy between the 26AS form and income tax returns, the Mumbai bench of the Income Tax Appellate Tribunal (ITAT) recently affirmed the addition made by the assessing officer.

Assessee Individual Vijay Kashinath Jagtap earns a salary from M/s. Pfizer Ltd. to support himself. The assessee filed his income tax returns, both original and updated, disclosing a thirty lakh rupee income. The difference in the payment received as per Form 26AS was included as “unexplained cash credits” by the assessing officer after the scrutiny assessment and he willingly gave the amount for taxes in accordance with Section 68 of the I-T Act 1961. The assessee filed an appeal with the ITAT against this ruling.

No one is speaking on behalf of the assessee, therefore the ITAT panel hears the departmental representative and reviews the papers that are on file before deciding the appeal.

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The assessee, according to Vranda U. Matkarni, counsel for the revenue, failed to provide any documentary evidence to explain the difference in salary income before the lower authorities and had intentionally revised his income return twice by declaring a lower amount as “salary income” in order to fraudulently claim a higher refund that was established by the department.

The division bench of ITAT, comprised of Kavitha Rajagopal (Judicial Member) and Prashant Maharishi (Accountant Member), dismissed the appeal filed by the assessee after taking into account the claims of both sides “The assessee has failed to establish the difference amount specified in Form 26AS and the returns filed by the assessee. Though several opportunities have been given to the assessee, the assessee has failed to furnish any documentary evidence for rebuttal. Hence assessee has nothing to controvert the view of the lower authorities in making the addition under the section. 68 of Income Tax Act 1961.”