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Facts
The assessee filed its return of income for AY 2020-21, which was processed with an addition under business and profession. The assessee claimed salary income was reported twice, leading to a mismatch and double taxation.
Held
The Tribunal found that the assessee had only earned salary, interest, commission, and dividend income, and no business income. The Tribunal set aside the orders of the AO and CIT(A) and restored the case to the AO for fresh verification.
Key Issues
Whether the assessee's salary income was erroneously included in business income, leading to double taxation due to a reporting mismatch.
Sections Cited
119(2)(b)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “B” BENCH: KOLKATA
Before: Shri Rajesh Kumar&Shri Pradip Kumar Choubey]
ORDER / आदेश Per Pradip Kumar Choubey, JM:
This is the appeal preferred by the assessee against order of Commissioner of Income Tax (Appeal)-Addl/JCIT(A)-4, Chennai (hereinafter referred to as the Ld. CIT(A)] dated 19.09.2024 for AY 2020-21.
Assessment Year: 2020-21 Manas Rawat 2. Brief facts of the case of the assessee is that the assessee filed its return of income for AY 2020-21. The return was processed and after process an addition of Rs. 51,42,248/- was made under business and profession raising a demand of Rs. 29,94,578/-.
Aggrieved by the intimation order assessee preferred an appeal before the Ld. CIT(A) wherein the appeal of the assessee has been dismissed.
Being aggrieved and dissatisfied the assessee preferred an appeal before us.
The Ld. Counsel for the assessee challenges the impugned order thereby submitting that the assessee had reported total salary income of Rs. 57,38,750/- , interest income of Rs. 1,53,494/-, dividend income of Rs. 1,482/- and commission income of Rs. 3/- in return of income under part A Profit and loss account but due to lack of knowledge the assessee has reported the said salary income under schedule income from salaries. The Ld. Counsel further submitted that the same was reported twice in the income tax return whereas the said income should ideally be reduced from the computation of business income as income offered to tax under head or income claimed as exempt. The counsel contended that this has resulted into double addition on the same items, income under the business and profession was taxed only due to reporting mismatch. The prayer of the ld. Counsel for the assessee is that matter should be remitted back to the file to verify the same.
The Ld. D. R supports the impugned order.
We have perused the order of Ld. CIT(A) and find that the assessee has furnished the particulars of income and amount in its return of income which is as follows:
Particulars Amount in Rs. Income from Salaries 24,38,750/- Income from Salaries 33,00,000/- Dividend income 1,482
Total 58,93,729/-
The contentions of the assessee is that there has been double addition of the same items. We find that the assessee had earned income from salary, interest, commission and dividend only and there was no income from the business and profession for the year under consideration as the chart reveals as stated above. It further reveals that it was an error as claimed by the assessee. The Ld. CIT(A) has also held in its order that the same should have been rectified by filing revised return but the time barred for final return of income and only option available for the assessee to rectify the mistake is to file condonation for delay application to the CBDT u/s 119(2)(b) of the Act and to file the revised return to rectify the mistake.
Going over the record and finding of the Ld. CIT(A), we are inclined to restore the case of the assessee before the AO to verify the same and if the contentions of the assessee found to be correct afresh order should be passed. The order passed by the AO confirmed by the CIT(A) is hereby set aside.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order is pronounced in the open court on 30th January, 2025
Sd/- Sd/- (Rajesh Kumar/राजेश कुमार) (Pradip Kumar Choubey /�द�प कुमार चौबे) Accountant Member/लेखा सद�य Judicial Member/�या�यक सद�य Dated: 30th January, 2025 SM, Sr. PS Copy of the order forwarded to: 1. Appellant- Manas Rawat, CB 54, Salt Lake, Kolkata-700064 2. Respondent – ITO, Ward-50(1), Kolkata 3. Ld. CIT(A)-Addl/JCIT(A)-4, Chennai 4. Ld. Pr. CIT- , Kolkata 5. DR, Kolkata Benches, Kolkata (sent through e-mail)