Short Overview:

Based on 26AS alone, no additions could be made. This could at best be a starting point for necessary verification but it could not be a standalone basis to justify the addition. Therefore, matter was remitted back to AO and additions can be made only if AO brings any independent evidence.

AO observed that assessee failed to reconcile interest income with its books of accounts and therefore added back said amount as undisclosed interest income as shown in the Form 26AS. Assessee submitted that this income did not pertain to it and for that reason the company did not even claim the credit for the corresponding taxes deducted at source.

It is held that Based on 26AS alone no additions could be made. This could at best be a starting point for necessary verification but it could not be a standalone basis to justify the addition. Therefore, matter was remitted back to AO for the limited purpose of verifying the information. And in case AO brings any independent evidence that assessee actually received interest income, then only he can bring the same to tax.

Decision: In assessee’s favour (by way of remand)