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2019 (9) TMI 144 - ITAT MUMBAIAddition of interest amount on which TDS was deducted - Addition made on the basis of the information contained in AIR and on the basis of the ledger of the payer - difference in interest income reported by the assessee and interest income reflected in the books of PRMPL(payer) - assessee disputes the correctness of the details contained in the said documents - HELD THAT:- Evidence cannot be used against the assessee unless assessee is given a chance to rebut the same. In the present case, the AIR and the ledger details of PRMPL were reflecting higher income than what was reported by the assessee in its return of income which went against the assessee. The amount reported in AIR or as per books of account of PRMPL cannot be treated as income of the assessee. Burden thereafter shifts on AO to establish the fact that the contents of the document relied upon by him is in fact true with supporting evidence. AO was very well empowered to summon the party, call for additional details from the parties to establish how that income pertained to the assessee and when the same was paid to the assessee. AO has not carried out any such exercise to rebut the contention of the assessee that they have not received any higher sum than what has been reported in its books of account. AO has the power to pass on the information to the Assessing Officer having jurisdiction over PRMPL to find out the correctness of claim of interest expenditure of the PRMPL and if not found to be correct, the same could be added to the income of the PRMPL. The mere fact that TDS has been deducted on a particular amount cannot ipso facto lead to an inference that assessee has a right to receive and has in fact, received the corresponding amount when the assessee disputes the correctness of the said figure. The presumption is applicable when the deduction of TDS is followed-up by the actual payment to the party and not applicable in cases wherein there is no receipt of amount by the parties as there is no right to receive the said amount. AIR and ledger of the PRMPL reflects higher amount, no addition can be made based on the said evidence when the AO has not rebutted the contention of the assessee that no amount over and above what is recorded in the books of the assessee have been ever received by the assessee. - Decided in favour of assessee.
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