Kuberji Developers Vs ACIT (ITAT Surat)
In a significant ruling, the Income Tax Appellate Tribunal (ITAT) Surat bench has directed the Assessing Officer (AO) to re-examine the case of Kuberji Developers, addressing concerns of double taxation on rental income. The decision, pronounced on January 16, 2025, emphasizes that income already offered for taxation in a prior assessment year cannot be subjected to tax again.
The case for assessment year (AY) 2017-18 originated from a mismatch identified by the AO between the rent declared by Kuberji Developers and the figures reflected in Form 26AS. The assessee had declared rental income of Rs. 9,41,930, while Form 26AS showed Rs. 17,20,000 received from M/s. Ashish Publicity, on which TDS was deducted. This discrepancy led the AO to add the difference of Rs. 7,78,070 to Kuberji Developers’ total income, alongside an addition for undisclosed interest income.
Kuberji Developers contended that the higher amount in Form 26AS was due to M/s. Ashish Publicity filing a TDS return that included rent for two financial years. Specifically, they asserted that Rs. 8,00,000 pertained to AY 2016-17 and Rs. 9,20,000 to AY 2017-18. The developer claimed to have already offered these amounts for taxation in their respective assessment years.
