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2022 (10) TMI 374 - AT - Income TaxAdditions of commission income u/s 44AD or 68 - assessee failed to establish commission agency business and treated the same to be unaccounted money u/s 69A read with section 115BBE - assessee has himself volunteered to offer the amount for taxation to be written back as an income - HELD THAT:- In this case, the Assessing Officer on the one hand has taken advantage of the ignorance of the assessee in offering the income on presumptive basis and taxed the receipts where the assessee was not supposed to pay the taxes, however, picked the other income whereupon the Assessing Officer found that the same was exigible to higher taxes. This, cannot be held justified at all. It has been held time and again that the Assessing Officer should help the assessee in computing and assessing the true and correct taxable income of the assessee and further that the income tax authorities should charge legitimate taxes from the assessees and they should not punish the assessees for their bona fide and ignorant mistakes. In this case, the AO has adopted pick and choose manner to fasten high tax liability upon the assessee which cannot be allowed at all. The impugned order of the CIT(A) is set aside and the matter is restored to the file of the Assessing Officer with a direction that the AO will assess the income of the assessee under different heads as per the provisions of the Act, after considering the submissions of the assessee in this respect and after giving adequate and proper opportunity to the assessee to present his case and necessary details and evidences. It is made clear that the Assessing Officer will not be influenced by the fact that the assessee himself has offered/returned any of the receipts/income under wrong head or has himself offered higher taxes in respect of certain income. The Assessing Officer will determine the true and correct income of the assessee under different heads as per the provisions of the Act. The appeal of the assessee is treated as allowed for statistical purposes.
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