2022 (12) TMI 1128 - HC - Income Tax

Amount shown in 26AS aken into consideration even when the TDS certificate indicates a higher receipt - HELD THAT - We find that the Tribunal had done an elaborate fact finding exercise and has pointed out as to how the assessing officer erroneously relied upon only the figures mentioned in the TDS certificate and ignored Form No.26AS - HELD Simply because there is difference in the claim of assessee in respect of TDS credit and the corresponding income, the AO has made the addition which cannot be accepted when the Form 26AS gives a different picture, which also assessee has no control; and 26AS Forms are generated by the Income-tax department and the figures come close to the assessee s contention. Therefore, opinion the assessee s income should be taken as Rs.3,95,030/-, which is shown in Form 26AS (downloaded from the Income tax Department website) and she should be given TDS credit of only Rs.39,569/- as reflected in the Form 26AS. We direct the AO to adopt these figures and compute the taxable income of assessee accordingly as per law. In this appeal, the above factual position is not being disputed by the revenue. Thus, we are of the clear view that there is no substantial question of law much less substantial question of law arising in this appeal for consideration.

Summary

Issues:
Interpretation of Section 260A of the Income Tax Act, 1961 regarding the consideration of income figures from Form 26AS and TDS certificate for assessment years 2010-11.

Analysis:
The High Court of Calcutta dealt with an appeal filed by the revenue under Section 260A of the Income Tax Act, 1961 against an order passed by the Income Tax Appellate Tribunal. The main issue raised was whether the Tribunal erred in law by considering only the amount shown in Form 26AS and not the higher amount indicated in the TDS certificate. The Court examined the Tribunal's findings, which highlighted discrepancies between the figures in Form 26AS and the TDS certificate for the same assessment year. The Tribunal emphasized that the Assessing Officer should consider both documents and not rely solely on the TDS certificate. It noted that Form 26AS, maintained by the Income-tax Department, should be given weightage as it provides an accurate reflection of the income credited to the assessee's account. The Tribunal concluded that the income should be based on the figures from Form 26AS, directing the Assessing Officer to compute the taxable income accordingly.

The Court acknowledged that the revenue did not dispute the factual position presented by the Tribunal. Consequently, the Court found no substantial question of law arising in the appeal. As a result, the appeal filed by the revenue was dismissed, and the connected application for stay was closed. The judgment underscores the importance of considering both Form 26AS and the TDS certificate in determining the taxable income of the assessee. It clarifies that Form 26AS, being generated by the Income-tax Department, serves as a reliable source for verifying income details, and the Assessing Officer should give due consideration to this form while making assessments.