TaxTMI 
TaxTMI 
2026 (7) TMI 1223
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....961 [hereinafter referred to as "the Act"], arising out of the assessment order dated 11.03.2024 passed by the Assessing Officer under section 143(3) read with section 144B of the Act for Assessment Year 2022-23. 2. The effective grievance of the assessee is against the action of the learned CIT(A) in confirming the addition of Rs. 9,60,000/- made by the Assessing Officer on account of an alleged claim of exemption under section 10(11) of the Act. 3. Briefly stated, the assessee is an individual deriving income primarily under the head "Salary". The assessee filed his return of income for Assessment Year 2022-23 on 25.07.2022 declaring total income of Rs. 28,25,780/-. The return was selected for scrutiny assessment. During the course ....
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....exemption under Section 10(11) of the Income Tax Act, 1961, without appreciating that the said amount was never received by the Assessee and no corresponding credit exists in any of his bank accounts. 2. That the Ld. CIT(A) erred in confirming the addition without appreciating that the entry of Rs. 9,60,000/- under Section 10(11) in the ITR was purely an inadvertent clerical error made by an unqualified person who assisted in return filing, and not any deliberate attempt to claim an exemption or conceal income. 3. That the Ld. CIT(A) erred in confirming the addition in violation of CBDT Circular No. 14(XL-35) dated 11/04/1955 which directs that the Department must not take advantage of the ignorance or mistakes of the asse....
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....le computing the total income and, therefore, no tax advantage was obtained by the assessee. The learned AR further invited our attention to the paper book containing Form No.16 issued by UPL Limited, Form No.26AS, bank statements of all four bank accounts maintained by the assessee during the relevant period, EPFO account statement, detailed bank-credit reconciliation and a sworn affidavit of the assessee. 8. It was submitted that every credit appearing in the four bank accounts has been identified and explained and none of the credits represents any provident fund receipt. Particular emphasis was placed on the EPFO account statement, which, according to the learned Authorised Representative, records nil withdrawal during Financial Year....
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....he orders of the Assessing Officer and the learned CIT(A). It was submitted that the assessee himself had disclosed the amount under section 10(11) in the return of income and failed to substantiate the same before the lower authorities. The learned Departmental Representative accordingly supported the orders of the authorities below. 12. We have heard the rival submissions and perused the material available on record. The short issue requiring adjudication is whether the addition of Rs. 9,60,000/- can be sustained merely because such amount was reflected under the exempt income schedule of the return of income despite the assessee's categorical stand that no such amount was ever received. 13. Upon a careful consideration of the m....
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....that section 10(11) concerns payments from a Statutory Provident Fund governed by the Provident Funds Act, 1925 or other notified provident funds. The assessee was admittedly employed with UPL Limited, a private sector company, and the provident fund applicable to such employment is governed by the Employees' Provident Funds and Miscellaneous Provisions Act, 1952. Therefore, even the factual premise underlying the impugned addition appears to be misconceived. 17. Most importantly, income-tax can be levied only on real income and not on a purely notional or non-existent receipt. A mistaken disclosure in a return of income, by itself, cannot constitute evidence of receipt of income when all surrounding facts and documentary evidence de....