INCOME TAX ACT, 1961

Section 139

Return of income - Mismatch of turnover as per return of income filed by assessee vis-a-vis turnover appearing in Form 26AS - Tax deduction corrected the TDS return -

Assessee was engaged in the business of colour dying on job work basis. During the course of assessment proceedings, AO noticed that there was difference of turnover in the return of income filed and Form 26AS. Assessee submitted that the total job work undertaken for M/s. B was only Rs. 54,07,405, and not Rs. 64,50,905 as reflected in Form 26AS. It was submitted that the credit note to the extent of Rs. 10,43,500 towards defects in quality of dyeing, colour variation, etc., are duly accounted in the books of account of the debtor / customer. However, unfortunately the said debtor / customer has not filed revised TDS return for the reason that the entire TDS amount was remitted on the basis of provisional bill raised by the assessee and also on the wrong presumption that they may not get the refund amount of the said TDS. Held: Assessee submitted that M/s. B had filed the revised TDS return disclosing the correct turnover of Rs. 54,07,405. If the statement of assessee was true, the same would be reflected in Form 26AS. In the interest of justice and equity, matter should be examined by AO and accordingly, the issue was restored back to AO to examine whether Form AS26 discloses the correct turnover as that of the turnover disclosed in the return of income filed by the assessee.

REFERRED :

FAVOUR : Matter remanded.

A.Y. : 2015-2016

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