SHRI HARI OM BHATIA,KOTA vs. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE,, KOTA

4 ITA 1033/JP/18 Shri Hari Om Bhatia vs. DCIT He has pointed that if the amount which was already offered to tax for the preceding year is taken into consideration then there will be no addition on this account.

On the other hand, ld. DR has relied upon the orders of the authorities below and submitted that the assessee himself as prepared the statement of affairs showing the income from incentive/commission received from bank and therefore, the Assessing Officer has made the addition on the basis of particulars and facts disclosed by the assessee.

I have considered the rival submissions as well as relevant material on record. The addition of Rs. 1,07,083/- was made by the AO due to the difference of incentive/commission income from SBI shown in the return of income and subsequently shown in the statement of affairs prepared by the assessee. The assessee has explained that the income on account of incentive/commission is declared in the return of income at Rs. 2,32,917/- on the basis of Form 26AS. On careful perusal of the details filed by the assessee as well as Form 26AS for the assessment year 2015-16 along with the computation of total income it is found that some of the amounts of incentive/commission from the bank were already shown in Form 26AS for the assessment year 2015-16 though the same was actually received for the year under consideration. It is also not in dispute that the 5 ITA 1033/JP/18 Shri Hari Om Bhatia vs. DCIT assessment has been declaring the income from incentive/commission from the bank on the basis of Form 26AS which means the income was offered as the same is accrued and become due for the year under consideration. Similarly when some of the amounts become due and accrued in the preceding year i.e. assessment year 2015-16 and was offered to tax on the basis of Form 26AS then to the extent of the said amount which has already offered to tax in the preceding year cannot be taxed again on the basis of receipt. The assessee is following the consistent method of recognizing the income from incentive/commission from the bank which is based on accrual and shown in Form 26AS then the change in the basis of recognizing the income from accrual to receipt will amount to double taxation of the amount which was already offered to tax. Hence, to avoid the double taxation of the amount the AO is directed to verify the necessary details pertaining to the income which was already offered to tax in the preceding year and is again shown as part of the receipt of incentive/commission and added to the income of the assessee.