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Case Law Details

Case Name : M/s Delite Properties Pvt. Ltd. Vs I.T.O. (ITAT Kolkata)
Appeal Number : ITA No.261/Kol/2016
Date of Judgement/Order : 06/06/2018
Related Assessment Year : 2006-07
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M/s Delite Properties Pvt. Ltd. Vs I.T.O. (ITAT Kolkata)

We have perused the relevant papers available on records. It appears from the fact that non acceptance of the assessee’s prayer for lawful exclusion of the amount have resulted to a wrong determination of income for the relevant year. Moreover, taxation of the same amount in two different years is a definite violation or principle that no piece of income can be taxed twice.

In this respect the assessee has relied upon the judgment passed by the Hon’ble Chennai Tribunal in TS 386-ITAT-2012-Chny in the case of R.Nagarjun vs ACIT where it was held that the income tax department is duty bound to demand and collect only legitimate tax dues and should not take advantage of ignorance of assessee. It was further held that same income cannot be taxed twice even though it is erroneously offered in two different years. Even under law if the assessee was not liable to be assessed for any reason, whatsoever, then the assessee’s claim for its non assessability cannot be denied merely because in the return filed by the assessee it mistakenly offered to pay tax on such income.

It was further held in the case of Kedarnath Jute Mfg Co.Ltd vs Commissioner of Income Tax 1971 AIR 2145 that “whether assessee is entitled to a particular deduction or not will depend on the provision of law relating thereto and not on the view which the assessee might take of his rights nor can the existence or absence of entries in the books of account be decisive or conclusive in the matter”. The case of the assessee is just similar to what has been cited above and the ratio laid down by the above judgements is fully applicable to the instant case. The action of non acceptance of the genuine claim of the assessee by the lower authorities is unjustified and liable to be deleted.

We consider it fair and proper in the interest of justice to set aside the orders of the authorities below on the issue in dispute and restore the matter to the file of the AO to decide the same afresh after giving the assessee proper opportunity of hearing and upon taking into consideration of the entire evidence already available on record as well as other documentary evidence which the assessee may choose to file in support of the claim on the issue.

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