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3. Apropos deletion of addition of Rs. 67, 67,97, 97,201/-

201/-

The assessee, Proprietor of M/s Vision Outdoors, is engaged in the business of advertisement by putting hoardings etc. and returned total income of Rs. 92,600/-. During the course of assessment proceedings, the AO noted from the Income Tax Department (ITD) database in Form No. 26AS that the total receipts are Rs. 1,39,38,684/- on which TDS made is Rs. 2,44,084/-. However, in the return filed alongwith the audit report, the total receipts have been shown at Rs. 71,41,483/- on which the TDS claimed is Rs. 1,29,849/-. The AO therefore, issued a show cause I.T.A. NO. 4157/DEL/2011 notice as to why the difference amount of receipts of Rs. 67,97,201/- shoudl not be added to the icnome returned. Assessing Officer was not satisfied with the reply of the assessee. He added the difference amounting to Rs. 67,97,201/- to the income of the assessee.

6.2 As pointed by the AR, mismatch with the figures in Form 26AS of ITD database itself can not be a ground to hold that there is understatement of receipts. It is trite in law that correct income has to be taxed in correct hands and in the correct year. It is not the case of the AO that the receipts of'<':
58.65 lacs do not pertain to the HUF. It is evident from the notices issued by the AO to the deductors and the reply received from them that the receipts shown in the return of HUF in fact pertain to the work executed by the appellant in HUF capacity. Thus, there is no justification to overlook the return filed by the appellant in HUF capacity on 30,9.2008 and hold that there is understatement of receipts by the appellant.