2026 (4) TMI 733

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....ee has taken the following grounds of appeal: "1. The Learned Commissioner of Income Tax (Appeals) erred in disregarding the submission, reconciliation and evidences furnished during the course of appellate proceedings. 2. The Learned Commissioner of Income Tax (Appeals) erred in holding that the appellant had not submitted the revised Annual VAT report during the course of appellate proceedings. 3. The learned Commissioner of Income Tax (Appeals) erred in holding that the Assessing Officer justifiably relied on the discrepancy to make the addition. 4. The Learned Commissioner of Income Tax (Appeals) erred in confirming the addition of Rs. 27,43,374/- on account of undisclosed sales and further erred in c....

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....ccountant while filing VAT returns and that steps were being taken to rectify the same by filing the Annual VAT Audit Report. The assessee also contended that the figures of sales and purchases as per the return of income were duly supported by audited financial statements, tax audit report under section 44AB and Form 26AS. However, the Assessing Officer did not accept the explanation on the ground that no supporting documentary evidence viz. the corrected VAT audit report was furnished during the assessment proceedings. Accordingly, the Assessing Officer rejected the books of account under section 145(3) of the Act and made additions of Rs. 27,43,374/- on account of alleged undisclosed sales and Rs. 10,20,486/- on account of disallowance o....

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.... audit report did not resolve the discrepancy with VAT returns and therefore upheld the action of the Assessing Officer. In Ground No. 5, the assessee contended that the sales as per Form 26AS matched with the return of income. The CIT(Appeals) dismissed this ground observing that Form 26AS reflects only TDS-related transactions and cannot be considered as conclusive evidence of total turnover when discrepancies exist with VAT data. 6. Accordingly, the CIT(Appeals) dismissed all the grounds of appeal and confirmed the additions made by the Assessing Officer. The assessee is in appeal before us against the order passed by the CIT(Appeals) dismissing the appeal of the assessee. 7. We have heard the rival submissions and perused the mate....