The AO cannot make additions merely based on Form 26AS, must verify the total contract amount and relevant bills before making any additions.

The Gujarat High Court has held that the Assessing Officer (AO) cannot make additions merely based on Form 26AS without verifying the total contract amount and relevant bills.

In the case in question, the assessee-company had entered into a contract with a third party for Rs. 8.32 crores. However, the AO only considered the amount received as per Form 26AS, which was Rs. 7.7 crores.

The AO did not verify the total contract amount or the relevant bills. The High Court held that the AO was not justified in making the addition, as he had not properly followed the due process of law. Tile: Principal Commissioner of Income-tax vs MBC Infra Space (P.) Ltd.

CourtL Gujarat High Court Citation: R/TAX APPEAL NO. 173 OF 2023 Dated: 20-Jun-2023