Case Law Details
Shri D. Koti Reddy Vs ITO (ITAT Bangalore)
In the instant case also, we have noticed that the assessee has offered the amount of Rs.2,60,38,898/-, which formed part of sundry creditors balance. Major portion of very same amount was assessed in AY 2008-09 by the AO and deleted by the Ld CIT(A). The assessing officer has accepted the above said creditors in AY 2012-13. We have also noticed that the above said credits were not received during the financial year relevant to AY 2013-14. Hence, even the assessee has surrendered above said amount voluntarily, yet the same is not legally assessable as income of AY 2013-14 as per the provisions of Income tax Act. As observed by Honourable Third member in the case of R Natarajan (supra), the Income tax Act does not authorize levy of tax on the same amount of income more than once. It is also well settled proposition that income pertaining to a particular year can be assessed only in that year, i.e., the income pertaining to one year cannot be assessed in any other year. In the case of CIT v. Milton Laminates Ltd (2013) 218 taxman 108 (Mag.) (Guj.), in Paragraph 5, the Hon’ble Gujarat High Court held that the Assessing Officer is free to give effect to order of Commissioner (Appeals) without restricting income to returned income, i.e., the assessing Officer can compute income lower than that returned income. In the case of Nirmala L. Mehta v. A. Balasubramanian (2004) 269 ITR 1 (Bom.)(HC), the Hon’ble Bombay High court held that, “There cannot be any estoppel against the statute, Article 265 of the Constitution of India in unmistakable terms provides that no tax shall be levied or collected except by authority of law. Acquiescence cannot take away from a party the relief that he is entitled to where the tax is levied or collected without authority of law”.
Accordingly, following the decision rendered in the case of R Natarajan (supra), we hold that the income of Rs.2,60,38,898/-erroneously offered by the assessee in AY 2013-14 cannot be assessed in that year, merely for the reason that the assessee has offered the same voluntarily.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
The assessee has filed this appeal challenging the order dated 28.2.2018 passed by Ld. CIT(A)-6, Bengaluru and it relates to the assessment year 2013-14.
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