Vardhaman L Jain, Pune V. Deputy Commissioner of Income-Tax, CPC, Bengaluru

ITA 323/PUN/2022

AI Insights

The case involves an appeal by Vardhaman L. Jain against the order of the Commissioner of Income Tax (Appeals) [NFAC], Delhi, which confirmed an addition of Rs.12,38,540 as income. This addition was initially made by the DCIT, CPC, based on the income discrepancy between the assessee's return and Form 26AS. The assessee argued that the difference was due to the cash system of accounting he follows, which was not considered by the CPC or the CIT(A). The Tribunal decided to set aside the case to the Assessing Officer for a thorough re-examination.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 134314 (ITAT-PUNE)
• Duration Of Justice: 8 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-01-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 19-12-2022
• Assessment Year: 2017-2018
• Appeal Filed On: 09-05-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: FORM 26AS
• Section: 143(1)

Judgement Text

आयकर अपीलीय अिधकरण “बी” Ɋायपीठ पुणेमŐ। IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “B” :: PUNE BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND DR. DIPAK P. RIPOTE, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No.323/PUN/2022 िनधाᭅरण वषᭅ / Assessment Year : 2017-18 Vardhaman L Jain, 4 th Floor, Indradhanushya Apts., BMCC Road, Opp.Firodiya Hostel, Pune – 411004. PAN: AACHJ 3495 C V s The DCIT, CPC. Appellant/ Assessee Respondent /Revenue Assessee by Shri V.L.Jain – AR Revenue by Shri Rajeev Kumar – DR Date of hearing 20/12/2022 Date of pronouncement 19/01/2023 आदेश/ ORDER PER DR. DIPAK P. RIPOTE, AM: This appeal filed by the Assessee is directed against the order of ld.Commissioner of Income Tax(Appeals)[NFAC], Delhi dated 30.04.2022 emanating from the order of the DCIT, CPC passed under section 143(1) of the I.T.Act, 1961 dated 25.03.2019. The Assessee has raised the following grounds of appeal: “1. The learned CIT(A) (NFAC) erred in law and on facts in confirming an addition of Rs.12,38,540/- as income merely because it is reflected in Form 26AS and not in the return. 2. The appellant craves leave to add to or amend the grounds of appeal, of required.” ITA No.323/PUN/2022 Vardhaman L. Jain [A] 2 2. The submissions of ld.Authorised Representative(ld.AR) : The ld.AR submitted that the only issue is difference between returned income and apparent income which is appearing in Form No.26AS. The ld.AR submitted that assessee is following Cash System of Accounting. Therefore, there is a difference in the returned income and income appearing in Form No.26AS. The ld.AR submitted that the CPC as well as ld.CIT(A) has failed to consider these facts. 3. The ld.Departmental Representative(ld.DR) for the Revenue relied on the orders of the Lower Authorities. 4. Findings and Decision : It is observed that the DCIT(CPC) has made addition to the income of the assessee because of difference shown in the income appearing in return of income and Form No.26AS. It is claim of the assessee that assessee had explained it, but CPC has not considered it. It is claim of the assessee that assessee followed cash system of accounting. In these facts, we deem it appropriate to set-aside the case to the Assessing Officer with the direction to verify and adjudicate denovo, after giving opportunity of being heard to the assessee. Accordingly, grounds of appeal raised by the assessee are allowed for statistical purpose. ITA No.323/PUN/2022 Vardhaman L. Jain [A] 3 5. In the result, appeal of the assessee is allowed for statistical purpose. Order pronounced in the open Court on 19 th January, 2023. Sd/- Sd/- (S.S.GODARA) (DR. DIPAK P. RIPOTE) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; ᳰदनांक / Dated : 19 th Jan, 2023/ SGR* आदेशकᳱᮧितिलिपअᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The CIT(A), concerned. 4. The Pr. CIT, concerned. 5. िवभागीयᮧितिनिध, आयकर अपीलीय अिधकरण, “बी” बᱶच, पुणे / DR, ITAT, “B” Bench, Pune. 6. गाडᭅफ़ाइल / Guard File. आदेशानुसार / BY ORDER, // TRUE COPY // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे/ITAT, Pune.