He wrongly showed Rs 9.6 lakh EPF in ITR, taxman added it; ITAT gives full relief
The tribunal found that the addition could not stand in the absence of evidence that the taxpayer had actually received the amount from the Employees’ Provident Fund Organisation (EPFO), withdrawn it from his EPF account or received any corresponding credit in his bank account.
A taxpayer in Mumbai filed an incorrect ITR, claiming Rs 9.6 lakh as exempt under Section 10(11). The Income Tax Department added this amount to the taxpayer's taxable income. The ITAT Mumbai ruled that without evidence of the taxpayer receiving the funds, the tax addition was not valid. The taxpayer provided extensive documentation, including bank statements and affidavits, proving he never received the money.
The tribunal upheld the taxpayer's explanation, finding the erroneous entry could not stand without proof of actual receipt.
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