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2022 (3) TMI 381 - AT - Income TaxDouble taxation - Addition of capital gain or income from other sources - assessee received a sum on signing as a consenting party in a sale transaction of land and offered long term capital gain by deducting the remaining amount as indexed cost of acquisition - AO observed that the assessee was not the owner of the above property as per the Sale deed and also did not have any share in the land transferred AND treated the entire amount of ₹ 10 lakhs as “Income from other sources‟ and made an addition for differential amount - HELD THAT:- Here is a case in which the assessee inadvertently suo motu offered ₹ 5.39 lakhs as long term capital gain and the AO made further addition of ₹ 4.61 lakhs. In view of the fact that the assessee was not at all chargeable to tax in respect of receipt of ₹ 10 lakhs for acting as a consenting party and the entire sale consideration has already been taxed in the hands of Mrs. Anuradha Ashok Satbhai, his mother, as a sole owner, we hold that the amount of long term capital gain of ₹ 5.39 lakhs wrongly offered by the assessee is also not chargeable to tax in the same manner in which the addition of ₹ 4.61 lakhs was wrongly made by the AO. It is trite that no income can be taxed merely because the assessee wrongly offered it in his return. I am reminded of the mandate of Art. 265 of the Constitution of India, which states that : `No tax shall be levied or collected except by authority of law‟. It is, therefore, held that full amount of ₹ 10 lakhs should be deleted from the assessee‟s computation of total income. Assessee appeal allowed.
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