Case Law Details
Pramod Kumar Tiwari Vs DCIT (ITAT Allahabad)
in the case in hand, the assessee has admittedly filed the return under wrong provisions of presumptive tax under section 44ADA whereas the commission income as reflected in Form 26AS is subjected to TDS under section 194H and is required to be declared in Form ITR 3 as per the normal computation of income and not under presumptive income under the provisions of section 44ADA of the Act. The assessee has filed the profit and loss account showing the income declared and the return of income as the net profit after deduction of expenditure from the gross commission income. The CIT(A) has dismissed the appeal of the assessee by citing the reason that the mistake in filing ITR 4 could have been rectified by the assessee by filing the revised return. The CIT(A) was of the view that the assessee has not availed the option available under the Income Tax Act. It is pertinent to note that when the assessee is having no other business activity then the commission income then the adjustment made by the CPC has resulted a double addition to the extent of Rs. 12,64,692/- already declared by the assessee in the return of income as the CPC has made the adjustment of gross amount of commission and not net income or profit out of the gross commission receipts. Accordingly, having regard to the facts and circumstances of the case and in the interest of justice, the impugned order of the CIT(A) is set aside and the matter is remanded to the record of the AO for deciding the same afresh after considering all the relevant facts and record to be produced by the assessee. Needless to say the assessee be given an appropriate opportunity of hearing before passing the fresh order.
FULL TEXT OF THE ORDER OF ITAT ALLAHABAD
This appeal by the assessee is directed against the order dated 6.4.2022 of CIT(A), National Faceless Appeal Centre (NFAC), Delhi for the assessment year 201718. The assessee has raised the following grounds:-
“1. Ld. CIT(A) erred in confirming addition of Rs. 23,85,963/- made by the AO on account of alleged difference between the income reported in Form 26AS and that reflected in the return alleging that it has not been disclosed in the return form. The addition made by the AO and sustained by the Ld. CIT(A) is not justified.
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