ITO Vs Lalit Raghunathrao Shinde (ITAT Pune)
Same Income, Two Hands? Not Allowed – ITAT Pune Quashes Double Taxation on 26AS Mismatch- Receipts Taxed in Company’s Books Can’t Be Reassessed in Individual’s Hands
In a second round of litigation, ITAT Pune held that the same income cannot be taxed twice merely because of a mismatch in Form 26AS, when it is already accounted for & taxed in the books of another entity.
Assessee, whose business had been taken over by Den Manoranjan Satellite Pvt. Ltd., faced addition of ₹2.13 crore on account of receipts shown in his 26AS. AO ignored reconciliation & taxed the full difference as undisclosed receipts. CIT(A)/NFAC, after detailed verification, found that the amounts were actually transferred to DMSPL & taxed there, deleting ₹2.11 crore.
On Revenue’s appeal alleging violation of Rule 46A, the Tribunal noted that the evidences were already before the AO & upheld CIT(A)’s speaking order. ITAT emphasized that once income is taxed in the hands of the correct recipient, the same cannot be reassessed in another’s hands merely due to TDS credit mismatch.
Held: CIT(A)’s deletion of ₹2.11 crore confirmed; no violation of Rule 46A; Revenue’s appeal dismissed.
