Reopening Assessement based on 26AS Mismatch is valid : HC

By | September 13, 2021
(Last Updated On: September 13, 2021)

Reopening Assessement based on 26AS Mismatch is valid

Facts of the case

Elaborating on the issue regarding the TDS, it is submitted that there is a huge difference between the data reflected in Form 26AS and the
assessee’s statement. Form 26AS is constantly updated from time to time and the figures may increase or decrease based on the TDS statement filed
by the deductors. It is further submitted that though the amount of TD credited in the assessee’s account may vary according to the e-TDS
statement filed by the deductor, the amount of gross receipt received/receivable by the assessee during the financial year is available
with the assessee as it follows Mercantile System of Accounting. It is submitted that the assessee has credited in his P&L Account an income of
Rs.377,87,93,055/- only out of the total receipts of Rs.419, 47, 44,777/- and there is a huge difference in the assessee’s submission before the Assessing
Officer during the course of assessment and the figures which were reflected in Form 26AS. Therefore, it is submitted that the assessee did not
submit the correct figures before the Assessing Officer and the facts came to the knowledge when the assessee filed the rectification application and
Form 26AS was downloaded by the Assessing Officer. Thus, it is clear that there is failure on the part of the assessee to disclose fully and truly all
materials before the Assessing Officer and the reopening of the assessmen is valid.

Decision

after the rectification application was filed, the details in Form 26AS was downloaded by the Assessing Officer and while examining the same, they
found that there was mismatch of TDS and also the receipts which form the income of the assessee. This undoubtedly is a tangible material to form an
opinion that the income has escaped assessment.

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