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2021 (1) TMI 394 - AT - Income TaxMismatch of turnover as per the return of income filed by the assessee vis- -vis the turnover appearing in Form 26AS - HELD THAT - AR submits that M/s.Bharat Silks has filed the revised TDS return disclosing the correct turnover. If the statement of the learned AR is true the same would be reflected in Form 26AS. In the interest of justice and equity matter should be examined by the AO. Accordingly the issue is restored to the files of the A.O. A.O. is directed to examine whether Form AS26 discloses the correct turnover as that of the turnover disclosed in the return of income filed by the assessee.
Issues Involved:
Mismatch of turnover between return of income and Form 26AS. Analysis: The appeal was against the CIT(A)'s order confirming an addition made by the Assessing Officer due to a discrepancy in turnover between the return of income and Form 26AS for the assessment year 2015-2016. The assessee, a private limited company engaged in color dyeing on a job work basis, declared a loss of ?31,452 in the return of income. The Assessing Officer noted a difference of ?10,43,500 in turnover between the filed return and Form 26AS. The assessee explained that the difference was due to a credit note issued to a debtor for defects in dyeing, which was not reflected in the TDS return. Despite providing a confirmation letter from the debtor, the A.O. rejected the explanation, adding the amount to the income. The CIT(A) upheld the A.O.'s decision, stating that the appellant failed to prove the genuineness of the transaction and did not explain why the customer did not revise the TDS return after receiving the credit note. The appellant then appealed to the Tribunal, submitting a paper book with documents, including the revised TDS return of the debtor showing the correct turnover. The Tribunal, after hearing both parties, decided to restore the matter to the A.O. for further examination. The A.O. was directed to verify if Form 26AS now reflected the correct turnover as declared in the return of income. Consequently, the appeal was allowed for statistical purposes. This case primarily revolved around the discrepancy in turnover between the return of income and Form 26AS. The A.O. and CIT(A) had disagreed with the assessee's explanation regarding the credit note issued to the debtor, leading to an addition to the income. However, the Tribunal found merit in the appellant's submission of the revised TDS return by the debtor, indicating the correct turnover. The Tribunal, in the interest of justice, remanded the matter to the A.O. for verification, emphasizing the importance of accurate reflection of turnover in Form 26AS.
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