No Addition Can Be Made Solely on 26AS-Sales Mismatch Due to Double TDS Deduction by Client: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has ruled that a tax addition cannot be made solely based on a sales mismatch in Form 26AS, especially when the discrepancy is due to a client deducting TDS twice. In this case, the assessee's client had erroneously deducted and reported TDS on the same transaction in two different financial years, causing the revenue to appear twice in the assessee's Form 26AS. The Assessing Officer made an addition for the excess amount. However, the ITAT observed that Form 26AS is only a verification tool and not conclusive proof of income. The assessee provided sufficient evidence, including bank statements and confirmations, to prove that the income was received and accounted for only once. The tribunal, therefore, deleted the addition, emphasizing that real income must be taxed, not notional figures arising from clerical errors.