Merely entry in Form 26AS does not make it taxable, Revenue will have to prove income

In a recent ruling by the Income Tax Appellate Tribunal, Nagpur Bench, the appeal of Mr. Sanjay Kisan Chopde against the Income Tax Department for the assessment year 2014-15 was meticulously examined and adjudicated upon. The tribunal’s detailed order addressed a crucial matter concerning the addition of Rs. 2,00,000 to Mr. Chopde’s income, a sum alleged to be a receipt not recorded in his books of accounts but reflected in Form 26AS.

Mr. Chopde had vehemently denied any involvement in transactions with M/s V S Lignite Private Ltd., the entity from which the alleged income was purportedly derived. The tribunal meticulously analyzed the submissions presented by both parties and delved into legal precedents pertinent to the burden of proof in matters concerning tax liabilities.

The crux of the issue revolved around the Income Tax Department’s assertion regarding the addition of Rs. 2,00,000 to Mr. Chopde’s income. The Department contended that despite the absence of corresponding entries in Mr. Chopde’s books of accounts, the amount was reflected in Form 26AS, thus warranting its inclusion in his taxable income.

However, Mr. Chopde vehemently refuted these claims, maintaining that he had no dealings with M/s V S Lignite Private Ltd. and that the addition of the sum to his income was erroneous and unsubstantiated.

The tribunal meticulously scrutinized the evidence presented by both parties and critically assessed the Department’s argument. Ultimately, the tribunal ruled in favor of Mr. Chopde, directing the deletion of the Rs. 2,00,000 addition from his income. The tribunal emphasized the crucial point that the Revenue had failed to conclusively establish that the income in question was indeed taxable.

While the verdict vindicated Mr. Chopde’s position and relieved him of the additional tax liability, it’s worth noting that the tribunal also addressed another aspect of the case. Mr. Chopde had claimed a Tax Deducted at Source (TDS) credit of Rs. 20,000, which was found to be erroneous. Consequently, the tribunal ruled that Mr. Chopde was not entitled to the TDS credit claimed erroneously.

In conclusion, the verdict handed down by the Income Tax Appellate Tribunal, Nagpur Bench, in the appeal of Mr. Sanjay Kisan Chopde underscores the significance of diligent scrutiny of evidence and adherence to legal principles in matters concerning tax disputes. The ruling serves as a testament to the importance of upholding the principles of justice and fairness in the realm of taxation.