A payment was reflected in Form-26AS and was shown to have been made to assessee, it could not be brought to tax if it could not be established that assessee was actual beneficiary of said payment

It has been seen that Tax Officers make addition on the basis of Form-26AS the transaction not being considered in the Income tax return. There are cases where all transactions in Form 26AS cannot be taken in Income tax return and every transaction cannot be brought to tax unless it is established that taxpayer is actual beneficiary of the payment.

Tribunals held in many cases that merely on the basis of entries in form No 26AS addition cannot be made. Burden is on the revenue to verify whether the taxpayer has earned any income.

We have seen in ITRs that taxpayer don’t verify Form-26AS. They fetch data from Form 26AS and file ITR on the basis of fetched data which is totally incorrect.

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