Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (9) TMI 977 - AT - Income TaxAddition on account of business income based on the unclaimed TDS in the 26AS of the assessee - Taxability of income comes from its accruing and arising in the hands of a person - TDS was accounted for in the partnership firm - CIT(A) deleted as here through technical mistake/oversight income of the Firm is wrongly represented in the hands of the appellant. However, at no point of time that income has accrued or arisen in the hands of the appellant - HELD THAT:- As in the original return of income assessee has claimed impugned TDS - However, upon realizing the fact that the corresponding income of TDS was accounted for in the partnership firm and therefore, assessee had filed a revised return of income wherein the assessee did not claim the said TDS and he paid the additional tax by way of self-assessment tax. Thus, the assessee had not claimed total TDS in his revised return of income, therefore ld CIT(A) has rightly deleted the addition in the hands of the assessee. We note that there was no fault of the assessee when some other party had wrongly deducted tax at source on any transaction by quoting the PAN of the assessee by mistake. The assessee had already informed to the customers that the proprietary business in the name of M/s Yogi Transport was closed and a new partnership was formed from assessment year (A.Y.) 2014-15 onwards. The assessee had also informed the PAN of the partnership firm of M/s Yogi Transport but customers wrongly deducted TDS by quoting assessee’s PAN. Even after this fact was pointed out to these companies personally by the assessee, the said parties did not care to revise their TDS returns. Thus, there was no fault on the part of the assessee, as the assessee has also subsequently filed revised return of income on 28.09.2018, wherein the assessee did not claim the said TDS and the assessee paid the additional tax by way of self-assessment tax. Therefore, we note that in these circumstances, the assessee should not be penalized. We note that action of assessing officer, in making prima facie adjustment by adding the turnover in the hands of the assessee, is quite illogical and unjustifiable in as much as it has resulted into double taxation. The partnership firm, M/s Yogi Transport had already accounted for this turnover in its books of accounts and shown profit thereon and also paid due tax thereon and now, the said entire turnover was again added to the income of the assessee and hence, it is a clear case of double taxation. Assessee has not claimed TDS in the revised return of income filed by him, and partnership firm of assessee has shown turnover which belongs to TDS hence there is no loss to the revenue. Appeal filed by the Revenue is dismissed.
|