Dinesh Kumar Singal Vs ITO (ITAT Chandigarh)
The ITAT, Chandigarh in the case of Shri Dinesh Kumar Singhal v. The ITO [ITA NO. 683/Chd/ 2022 dated May 22, 2023] held that income of the assessee which is already taxed in one head cannot be taxed under any other head by the Revenue Department.
Facts:
Shri Dinesh Kumar Singhal (“the Appellant”) filed return of income for the Assessment year 2017-18 inter alia disclosed INR 3,00,000/- under the head Income from House Property and claimed statutory deduction of 30% and net amount of INR 2,10,000/- showed as income under the head Income from House Property.
The Central Processing Centre, Bangalore (“CPC”) against the return filed by the Appellant made a prima facie addition of INR 3,00,000 as Income from Other Sources which was already offered to tax by the Appellant under the head of Income from House Property. The Appellant filed a rectification application before the CPC which was dismissed by CPC vide an Order (“the Order”).
Aggrieved by the dismissal of application the Appellant moved in appeal before the Commissioner of Income Tax (Appeal), Delhi (“CITA”) who vide an Order dated September 09, 2021 (“the Impugned Order”) confirmed the Order of the CPC. Aggrieved thereby the Appellant filed an appeal before the ITAT.
The Appellant contended that the income amounting INR 3,00,000 from House Property was properly disclosed and after claiming of statutory deduction of 30% the net amount of INR 2,10,000 was showed as income under the head Income from House Property which was accepted by the CPC but at the same time addition of INR 3,00,000 related to the same rental income was made by the CPC under the head Income from Other Sources.
Issue
Whether the addition of INR 3,00,000 by the CPC under the head of Income from Other Sources is sustainable?
Held
The ITAT in ITA NO. 683/Chd/ 2022 dated May 22, 2023 held as under:
