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2019 (2) TMI 1355 - AT - Income TaxAddition on account of undisclosed income as alleging that undisclosed TDS was not shown in ITR - AR has submitted that it may be a TDS deducted by the said party on amount of service tax and therefore, the same cannot be treated as income of the assessee - HELD THAT:- Variation of receipts shown in the two Form No. 26AS first taken on 18/8/2015 at the time of filing of return of income and another taken on 21/11/2017 clearly manifests that some amounts were subsequently added in the traces. The Assessing Officer has made addition without verification of the nature of the receipt and even without verification whether any incorrect details are uploaded in the account of the assessee. Therefore, merely because there is a TDS details uploaded by the other party would not ipso facto amounts to an additional receipt by the assessee which can be considered as income. The assessee has submitted that the additional amount shown as receipt from Capital First was never received by the assessee, therefore, it requires a proper verification from the other party as to what this amount of ₹ 20,970/- on which the TDS of ₹ 2,098 was deducted U/s 194H of the Act is actually representing. Accordingly we direct the Assessing Officer to verify the correctness of the details and the nature of the alleged receipts. Receipts from the TVS motors on which the TDS u/s 194A is deducted - HELD THAT:- We find that if the interest if any was became due and payable by the said company to the assessee then it would be an income of the assessee as it was credited only during the year under consideration. However, the actual receipt of the said income or whether the said amount of ₹ 5,548/- is actually payable to the assessee by the TVS motors or not is to be verified from the other party. Hence, the Assessing Officer is directed to verify whether the said amount was payable by the said company to the assessee or actually paid during the year under consideration or not and then consider the same after giving an opportunity of hearing to the assessee. Receipt as rent from Worldwide Machinery Solution Pvt. Ltd - HELD THAT:- We find that the assessee has already shown an interest income of ₹ 1,43,400/- from Worldwide Machinery Solution Pvt. Ltd., therefore, a lessor amount shown in the Form No. 26AS would not lead to the conclusion that this is an additional income of the assessee when the assessee has already declared the interest income from the same party. Accordingly, we delete the addition Amount shown as receipt from Raj Motors on which the TDS of ₹ 851/- was deducted U/s 194C - AR has submitted that the assessee is not working under contract of the said company but the assessee purchases spare parts from the said party and there is no question of any receipt but the assessee has been paying against the purchases made from the said party - HELD THAT:- Once, there is no business between the parties which would fall under the provisions of Section 194C of the Act then the said amount of ₹ 42,556/- shown as receipt under contract is required to be verified from the other party. Accordingly, we direct the Assessing Officer to verify the correctness of the said entry in the Form 26AS from the other party and then consider the issue after giving an opportunity of hearing to the assessee. - Appeal of the assessee is partly allowed for statistical purposes.
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