Tribunal emphasizes fact verification before adding TDS credit to income

The Tribunal allowed the appeal, emphasizing the importance of verifying facts before adding TDS credit to the assessee's income solely based on entries. The case was remanded to the Assessing Officer for further investigation and consideration of the assessee's contentions regarding the TDS credit.

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Issues involved:
The appeal against the order of the National Faceless Appeal Centre under the Income Tax Act regarding the addition of TDS credit in the assessee's income without corresponding income shown by the assessee.

Issue 1: Addition of TDS credit in the assessee's income
- The Assessing Officer added Rs. 4,99,999/- into the income of the assessee due to the reflection of credit of TDS in Form 26AS without any corresponding income shown by the assessee.
- The ld. CIT(A) confirmed the addition, stating that the assessee failed to prove that no sum was received from the deductor, M/s Loop Mobile (India) Ltd.
- The assessee contended that in previous years, the TDS entries by M/s Loop Mobile (India) Ltd. were reversed, but in the current year, despite objections, the reversal did not occur. The assessee claimed no business link with the company and objected to the burden of proof placed on them.
- The Tribunal found that the assessee denied any business link with M/s Loop Mobile (India) Ltd., made efforts to contact the company for reversal of the entry, and the TDS credit was made in error. The Tribunal set aside the additions, directing the Assessing Officer to verify the facts and give the assessee an opportunity to present its case.

In conclusion, the Tribunal allowed the appeal for statistical purposes, emphasizing the importance of proper verification of facts before making additions to the assessee's income based solely on TDS entries. The case was restored to the Assessing Officer for further investigation and consideration of the assessee's contentions regarding the TDS credit.

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