Addition for incorrect salary in form 26AS of IAS Officer quashed in view of contradiction in certificate by Chief Treasury Officer and Form 26AS – ITAT
ABCAUS Case Law Citation:
1023 (2016) 09 ITAT
Assessment Year 2011-12
Brief Facts of the Case:
The assessee was an IAS Officer who had declared salary of Rs.12.12 lacs during the relevant year with tax deducted at source amounting to Rs.1.88 lacs. The Assessing Officer (AO) observed that asp er Form No. 26AS, the assessee had been shown to have received total salary of Rs.20.22 lacs.
The assessee submitted that he had received salary only to the tune of Rs.12.12 lac and the remaining salary shown in Form 26AS at Rs.8.10 lac and TDS of Rs.1.02 lac did not relate to him. However, the AO did not accept the assessee’s contention and added the differential amount of Rs.8.10 lacs to the total income.
Aggrieved with the order of the AO, the assessee appealed before CIT(A) and filed revised Form No.26AS. As per revised Form No. 26AS the total salary paid to assessee was Rs. 16.31 lacs as under:
|(i)||Salary from Nagar Nigam||Rs. 3.42 lacs|
|(ii)||Salary from Treasury Office||Rs. 11.33 lacs|
|(iii)||Salary from Development Authority||Rs. 1.55 lacs|
|Rs. 16.31 lacs|
The assessee claimed that the salary shown by Treasury Office at Rs. 11.33 was erroneous. However CIT (A) was not convinced and confirm the addition to the tune of Rs. 4.18 lacs (16.31 – 12.12).
The assessee aggrieved against this addition of Rs. 4.18 lacs went in appeal to ITAT.
Contentions of the Assessee:
The assessee submitted that he was posted on duty during the year at three places mentioned in Form 26AS. However, he contended that salary shown to have been received from Nagar Nigam and Development Authority was correct but the salary shown in the revised 26AS by Treasury Officeat Rs. 11.33 lacs was wrong. In his support, the assessee filed a certificate issued by Office of the Chief Treasury Officer showing receipt of gross salary at Rs. 6.96 lacs only with the corresponding amount of TDS.
The assessee submitted that in revised Form 26AS there were 17 transactions under main head no. 5. and the salary payments shown at Sl. No.13 to 17 did not pertain to him as during that period he was working with Nagar Nigam, from which the salary was separately shown.
The ITAT noted that there was a contradiction in the certificate issued by the Office of Chief Treasury Officer, and the revised Form No.26AS. Therefore under those circumstances, the order of the CIT(A) was set aside and the matter was remanded back to the AO to examine the assessee’s claim qua the receipt of salary shown at Sl. Nos.13 to 17 in Form No. 26AS for ascertaining if the assessee actually received this amount of salary from Treasury Office.