ITAT Mumbai, recently ruled that a Rs 9.6-lakh tax addition based solely on an incorrect ITR entry showing EPF money received is not valid. This is especially true when there is no evidence that the salaried employee actually received the money from EPFO, withdrew it from his EPF account, or had any corresponding bank credit.
This ruling came about in a case where Mr Gole from Belapur Road, Mumbai, filed his income tax return (ITR) on July 25, 2022, declaring a total salary income of Rs 28.25 lakh. However, due to a mistake made by the person who helped Mr Gole with his ITR filing, he incorrectly reported Rs 9.6 lakh as exempt income under Section 10(11). This Section deals with payments from a statutory provident fund covered by the Provident Funds Act, 1925, or certain notified Central Government PFs.
