Tax deduction evidence and claimed deductions justified one more opportunity for fresh assessment consideration

Where Form 16 and Form 26AS reflected tax deduction and advance tax payments, the absence of an earlier claim was not treated as conclusive against the assessee. The assessee was entitled to one further opportunity to substantiate the claimed salary exemption, employment tax, savings interest, section 80C deduction and house property loss from employer records. The ex parte assessment was therefore remitted to the Assessing Officer for fresh, de novo adjudication.

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Issues: Whether the assessee was entitled to a further opportunity to substantiate the deductions and exemptions reflected in Form 16 and Form 26AS, and whether the assessment required remand for fresh consideration.

Analysis: The assessment had been completed ex parte after repeated non-compliance, but the records showed tax deduction at source and advance tax payments in Form 26AS. The claimed exemptions and deductions, including salary exemption, tax on employment, interest on savings, section 80C deduction, and house property loss, were stated to be available from employer records. In these circumstances, the absence of an earlier claim was not treated as conclusive against the assessee, and the assessee was to be afforded one more opportunity to place supporting evidence before the Assessing Officer. The matter was therefore sent back for fresh adjudication.

Conclusion: The issue was decided in favour of the assessee, and the assessment was remitted to the Assessing Officer for de novo consideration.

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