Balbir Singh Vs ITO (ITAT Chandigarh)
Wrong ITR Form Cannot Produce the Right to Tax Twice: ITAT Deletes ₹26.69-Lakh Form 26AS Addition Processed u/s 143(1)
Commission Receipts Reflected in Form 26AS
The assessee carried on the business of mobile recharge & sale of SIM cards. He filed his return of income for AY 2017-18 in ITR-4/Sugam, disclosing the income arising from the business activity.
While processing the return u/s 143(1), CPC noticed commission receipts of ₹26,69,319 appearing in Form No.26AS.
CPC treated the entire amount reflected in Form No.26AS as additional taxable income, resulting in an adjustment & consequential demand.
The assessee contended that the commission receipts were not undisclosed. They formed part of the business receipts already considered while computing the net business income offered in the return. Therefore, separately adding the gross receipts appearing in Form No.26AS resulted in taxation of the same stream of income for a second time.
Wrong Return Form Selected
The assessee filed an application u/s 154, explaining that ITR-4 had been selected inadvertently, whereas the appropriate return form was ITR-3.
According to the assessee, the mistake was confined to the choice of the return form. The underlying business receipts & corresponding net income had already been disclosed. Even if the return had originally been filed in ITR-3, the amount of taxable income would have remained the same.
