Addition Made Merely on TDS certificate is Unjustified and Liable to be Deleted: ITAT

The assessee entered into two agreements of leave license and service charges, in respect of which, the assessee has offered the income under the head “income from house property”, whereas the AO had brought the same under the head “income from other sources”. In the assessment year 2003–04, the Assessing Officer assessed income from rent and service charges received from ICICI Prudential Life Insurance Co. Ltd and IDBI Bank Ltd. as income from House property. The ld. CIT(A) under Section 263 the amount of Rs 18,98,100 as income from rent in this particular matter and the position accepted by the AO were not disturbed by the ld. CIT(A), while invoking provisions of section 263 of the Act.

The tribunal observed that the assessee had not furnished any supporting evidence or documentation in support of his contention that the amount so received by him is on account of forfeiture of the amount in relation to the cancellation of the transaction of property. The tribunal does not see any justifiable basis to interfere with the findings of the ld. CIT(A), and the same is hereby confirmed and the ground of appeal taken by the assessee is dismissed.  The ld. CIT(A) has confirmed the addition of Rs. 1,35,000 under section 68 of the Act. It was submitted that the loan transactions are small transactions and duly reflect in the regular books of accounts. No evidence was found of unaccounted income being used as cash credit. Therefore, the addition was deleted may kindly be deleted.

The tribunal have heard the rival contentions and perused the material available on record. Regarding transactions, Umesh Gupta and Dilip Thakre where the assessee has filed the necessary confirmations, a fact not disputed by the lower authorities, the addition is hereby directed to be deleted but in respect of other transactions, it found that the assessee had failed explain the said transactions with appropriate documentation, the additions are hereby confirmed. In the result, the additions of Rs 35,000 were deleted and the remaining additions of Rs 1,00,000 are sustained. In the result, the ground of appeal is partly allowed.

Regarding addition of Rs. 1 lakh under section 68 was made by the Assessing Officer, it was submitted that same relates to loan received by the assessee from his mother Smt. Shaymadevi and she had confirmed the said loan transactions in her own assessment proceedings before the same AO. It was submitted that the addition was made in the hands of the mother and the matter was set aside to the file of the Assessing Officer. It was submitted that where Smt. Shyamadevi Gupta has confirmed the loan transactions entered into with the assessee, the addition in the hands of the assessee does not lie and if at all, any addition has to be made, the same can be made in the hands of the mother of the assessee and therefore, the addition made in the hands of the assessee deserve to be deleted.

The mother of the assessee has confirmed before the same Assessing officer in her own assessment proceedings that she has given the amount of Rs 1 lacs to the assessee and the addition of the said amount has already been made on substantive basis. Therefore, the addition are to be made in the hands of the mother of the assessee where the matter is currently pending for the AO to decide as per law. Hence, the addition so made was directed to be deleted and the ground of appeal was allowed.

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