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2016 (9) TMI 500 - ITAT DELHI

2016 (9) TMI 500 - ITAT DELHI - TMI - FDRS Interest taxability - income accrued - Held that:- Assessee is engaged in the business of sales of bikes and owner of bikes are insured with M/s National Insurance Co. Ltd. or assessee IndusInd Bank. All sums received by the assessee as job charges duly declared. No dealings of the assessee with National Insurance Co. Ltd. and books of accounts has been accepted. No such sums received by the assessee. On perusing a Certificate from the Bank alongwith co .....

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e assessee, therefore, the Form 26AS cannot be made a basis for addition. - As regards the TDS Certificate is concerned, on perusing the records, as noted that the National Insurance Company has issued a TDS Certificate in the name of the assessee and mere issue of TDS certificate does not establish that there is any income credited to the income of the assessee as no sum is either due to the assessee or any sum has been actually received by the assessee, thus the addition of ₹ 11,605 .....

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led. Hence, the addition in dispute is untenable and the same is deleted. - Decided in favour of assessee - I.T.A. No. 735/DEL/2015 - Dated:- 2-8-2016 - SHRI H.S. SIDHU, JUDICIAL MEMBER For The Assessee : Sh. Gautam Jain, CA For The Department : S h . A. Sreenivasa Rao, Sr. DR ORDER PER H.S. SIDHU : JM Assessee has filed this Appeal against the impugned Order dated 25.11.2014 passed by the Ld. CIT(A), Rohtak relevant to assessment year 2010-11 on the following grounds:- 1. That the order passed .....

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arned CIT (A) has erred in ignoring the facts as per written submission which are on record and duly discussed in the order . 3. That to sustain the additions of ₹ 1278760/- by the Ld. CIT (A) under three heads are quite arbitrary and unjustified. 4. That ignoring the submission of the appellant by the Learned CIT (A) are contrary to the provisions of Law and facts of the case. Further That all the figures returned, books version, method of accountancy are duly accepted and provisions of S .....

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nnaire were issued. Assessee s counsel attended the proceedings from time to time and written replies were filed which have been considered by the AO. Books of accounts were produced and test checked. AO observed that assessee has not shown the receipts in his books of accounts and accordingly, he made the addition of ₹ 12,78,760/- and ₹ 23,396/- vide his order dated 4.3.2013 passed u/s. 143(3) of the I.T. Act, 1961 by assessing the income at ₹ 21,74,400/-. 3. Against the order .....

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d Bank), ₹ 8,47,592/- (National Insurance Company Limited) and ₹ 4,19,563/- (PNB FDR interest). Merely by stating that the amount did not relate to him when payments are received by him alone, i.e. in his bank accounts is not a satisfactory explanation. Moreover, the explanation in relation to the FDR interest as being relating to his wife is preposterous considering the fact that it has been credited to him and is hence, not accepted. In the absence of any explanation/ evidence to s .....

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be treated as income of the assessee as Form 26AS neither forms part of books of accounts of the assessee. He further stated that it is a well settled law that the bank account is not books of account of the assessee. Hence, he further stated that Form 26AS cannot be made a basis for addition. As regards the TDS Certificate is concerned, he stated that the National Insurance Company has issued a TDS Certificate in the name of the assessee and mere issue of TDS certificate does not establish tha .....

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regular income tax assessee. The FDRs interest and TDS claim was duly made in her return. The TDS deducted under the assessee PAN actually its belong to her. Nor the interest is claimed by the assessee nor the benefit of TDS is availed. It is only a clerical mistake by Bank. Therefore, he requested that the addition in dispute may be deleted. 6. On the other hand, Ld. DR relied upon the orders of the authorities below and stated that no cogent explanation has been offered before the lower author .....

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s National Insurance Co. Ltd. or assessee IndusInd Bank. All sums received by the assessee as job charges of ₹ 12,47,468/- duly declared. No dealings of the assessee with National Insurance Co. Ltd. and books of accounts has been accepted. No such sums received by the assessee. On perusing a Certificate from the Bank enclosed at Page no. 23 of the Paper Book alongwith copy of FDR (pages 25 to 27 of the Paper Book) it shows that the interest is on account of FDRs of wife of the assessee Smt .....

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TDS Certificate is concerned, on perusing the records, I note that the National Insurance Company has issued a TDS Certificate in the name of the assessee and mere issue of TDS certificate does not establish that there is any income credited to the income of the assessee as no sum is either due to the assessee or any sum has been actually received by the assessee, thus the addition of ₹ 11,605/- and ₹ 8,47,592/- is not tenable in the eyes of law, hence, the same are deleted. With re .....

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fully supported by the ITAT, Delhi Bench decision dated 31.3.2015 in the case of ITO vs. Basant Kumar in ITA No. 4679/Del/2012 (AY 2009-10) wherein in almost identical circumstances, the Tribunal has upheld the order of the Ld. CIT(A) deleting the addition on the basis of Form 26AS by holding as under:- 6. It is only elementary that information as per database of the revenue authorities cannot be, by itself, a legally sustainable basis for addition being made to the income of the assessee and th .....

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