Shri Hari Om Bhatia, Kota v. Deputy Commissioner Of Income Tax, Central Circle,, Kota

ITA 1033/JPR/2018 | 2016-2017
Pronouncement Date: 01-11-2019 | Result: Allowed

Appeal Details

RSA Number 103323114 RSA 2018
Assessee PAN ANAPB6218Q
Bench Jaipur
Appeal Number ITA 1033/JPR/2018
Duration Of Justice 1 year(s) 1 month(s) 24 day(s)
Appellant Shri Hari Om Bhatia, Kota
Respondent Deputy Commissioner Of Income Tax, Central Circle,, Kota
Appeal Type Income Tax Appeal
Pronouncement Date 01-11-2019
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted SMC
Tribunal Order Date 01-11-2019
Last Hearing Date 22-10-2018
First Hearing Date 22-10-2018
Assessment Year 2016-2017
Appeal Filed On 07-09-2018
Judgment Text
VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCHES (SMC) JAIPUR JH FOT; IKY JKO ] U;KF;D LNL; DS LE{K BEFORE: SHRI VIJAY PAL RAO JUDICIAL MEMBER VK;DJ VIHY LA-@ ITA NO. 1033/JP/2018 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2016-17 SHRI HARI OM BHATIA 49-A NEW COLONY GUMANPURA KOTA. CUKE VS. THE DCIT CENTRAL CIRCLE KOTA. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: ANAPB6218Q VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI P.C. PARWAL (C.A.) JKTLO DH VKSJ LS@ REVENUE BY : SHRI ABHISHEK SHARMA (ACIT) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 01/10/2019 MN?KKS'K .KK DH RKJH[K @ DATE OF PRONOUNCEMENT : 01/11/2019 VKNS'K@ ORDER PER: VIJAY PAL RAO J.M. THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER DATED 22.06.2018 OF LD. CIT(A)-2 UDAIPUR FOR THE ASSESSM ENT YEAR 2016-17. THE ASSESSEE HAS RAISED THE FOLLOWING GROUND:- 1. THE LD. CIT(A) HAS ERRED ON FACTS AND IN LAW IN CONFIRMING THE ADDITION OF RS. 1 07 083/- ON ACCOUNT OF DIFFERENCE IN SBI BANK INCENTIVE/COMMISSION INCOME DECLARED IN ITR AS PER FORM 26AS AND THE AMOUNT SHOWN IN STATEMENT OF AFFAIRS. ITA 1033/JP/18 SHRI HARI OM BHATIA VS. DCIT 2 2.THE ASSESSEE CRAVES TO AMEND ALTER AND MODIFY AN Y OF THE GROUNDS OF APPEAL. 3. THE APPROPRIATE COST BE AWARDED TO THE ASSESSEE. 2. THE ASSESSEE IS AN INDIVIDUAL AND DERIVES INCOME FROM SALARY INTEREST AND INCENTIVE/COMMISSION. THE ASSESSEE FIL ED HIS RETURN OF INCOME ON 15.12-2016 DECLARING TOTAL INCOME OF RS. 22 50 9 40/-. THE RETURN OF INCOME WAS FILED BY THE ASSESSEE AFTER A SEARCH AND SEIZURE ACTION CARRIED OUT AT HIS PREMISES U/S 132(1) OF THE IT ACT ON 03. 03.2016. DURING THE COURSE OF ASSESSMENT PROCEEDINGS THE AO ASKED THE ASSESSEE TO FILE THE STATEMENT OF AFFAIRS WHEREIN THE ASSESSEE HAS SHOWN THE INCENTIVE/COMMISSION RECEIVED FROM SBI AT RS. 3 40 000/- WHEREAS THE ASSESSEE DECLARED THE INCOME ON ACCOUNT OF INCENTIV E/COMMISSION IN THE RETURN OF INCOME AT RS. 2 32 917/-. IT WAS CLARIFIE D THAT IN THE RETURN OF INCOME THE ASSESSEE HAS DECLARED INCENTIVE/COMMISSI ON INCOME RECEIVED FROM SBI AS PER FORM 26AS WHEREAS DURING THE YEAR U NDER CONSIDERATION THE INCENTIVE/COMMISSION WAS RECEIVED AT RS. 3 40 0 00/-. THE ASSESSING OFFICER DID NOT ACCEPT THE EXPLANATION OF THE ASSES SEE AND MADE THE ADDITION OF THE DIFFERENTIAL AMOUNT OF RS. 1 07 083 /- TO THE INCOME OF THE ASSESSEE. THE ASSESSEE CHALLENGED THE ACTION OF THE AO BEFORE THE LD. CIT(A) BUT COULD NOT SUCCEED. ITA 1033/JP/18 SHRI HARI OM BHATIA VS. DCIT 3 3. BEFORE THE TRIBUNAL THE LD. AR OF THE ASSESSEE HAS SUBMITTED THAT AS PER FROM 26AS THE INCENTIVE/COMMISSION IS RECEIVED OF RS. 2 32 917/- WHICH WAS DECLARED AND OFFERED TO TAX IN THE RETURN OF INCOME. IN THE COURSE OF ASSESSMENT PROCEEDINGS AS REQUIRED BY THE AO THE ASSESSEE PREPARED THE STATEMENT OF AFFAIRS AND ACCORDING TO WHICH THE INCENTIVE RECEIVED IS SHOWN AT RS. 3 40 000/- WHICH IS ACTUAL AMOUNT RECEIVED DURING THE YEAR. THE LD. AR HAS THUS SUBMITTED THAT THE ST ATEMENT OF AFFAIRS WAS PREPARED ON THE BASIS OF ACTUAL AMOUNT RECEIPT AS P ER BANK STATEMENT HOWEVER THE ASSESSEE HAS DECLARED THE INCOME ON AC COUNT OF INCENTIVE/COMMISSION INCOME FROM THE BANK AS PER FO RM 26AS. THUS THE LD. AR HAS SUBMITTED THAT THE FACT REMAINS THAT THE INCENTIVE/COMMISSION ACCRUED AND DUE FOR THE YEAR IS RS. 2 32 917/- AND THE AMOUNT WHICH IS ACTUALLY RECEIVED MORE THAN THIS INCOME PERTAINS TO THE INCENTIVE/COMMISSION ALREADY ACCRUED TO THE ASSESSE E IN THE PRECEDING YEAR AND OFFERED TO TAX. THEREFORE THE SAID AMOUNT CANNOT BE BROUGHT TO TAX FOR THE YEAR UNDER CONSIDERATION AS IT WILL BE DOUBLED TAXATION ON THE SAME INCOME. HE HAS FILED COMPUTATION OF INCOME FOR THE ASSESSMENT YEAR 2015-16 ALONG WITH FORM 26AS AND POINTED OUT THAT S OME OF THE RECEIPTS SHOWN IN THE STATEMENT OF AFFAIRS FOR THE YEAR UNDE R CONSIDERATION WERE ALREADY SHOWN IN FORM 26AS FOR THE ASSESSMENT YEAR 2015-16 AND THEREFORE THE SAME WAS OFFERED TO TAX IN THE ASSES SMENT YEAR 2015-16. ITA 1033/JP/18 SHRI HARI OM BHATIA VS. DCIT 4 HE HAS POINTED THAT IF THE AMOUNT WHICH WAS ALREADY OFFERED TO TAX FOR THE PRECEDING YEAR IS TAKEN INTO CONSIDERATION THEN THE RE WILL BE NO ADDITION ON THIS ACCOUNT. 4. ON THE OTHER HAND LD. DR HAS RELIED UPON THE OR DERS OF THE AUTHORITIES BELOW AND SUBMITTED THAT THE ASSESSEE H IMSELF AS PREPARED THE STATEMENT OF AFFAIRS SHOWING THE INCOME FROM INCENT IVE/COMMISSION RECEIVED FROM BANK AND THEREFORE THE ASSESSING OFF ICER HAS MADE THE ADDITION ON THE BASIS OF PARTICULARS AND FACTS DISC LOSED BY THE ASSESSEE. HE HAS RELIED UPON THE ORDERS OF THE AUTHORITIES BE LOW. 5. I HAVE CONSIDERED THE RIVAL SUBMISSIONS AS WELL AS RELEVANT MATERIAL ON RECORD. THE ADDITION OF RS. 1 07 083/- WAS MADE BY THE AO DUE TO THE DIFFERENCE OF INCENTIVE/COMMISSION INCOME FROM SBI SHOWN IN THE RETURN OF INCOME AND SUBSEQUENTLY SHOWN IN THE STATEMENT OF A FFAIRS PREPARED BY THE ASSESSEE. THE ASSESSEE HAS EXPLAINED THAT THE I NCOME ON ACCOUNT OF INCENTIVE/COMMISSION IS DECLARED IN THE RETURN OF I NCOME AT RS. 2 32 917/- ON THE BASIS OF FORM 26AS. ON CAREFUL PERUSAL OF TH E DETAILS FILED BY THE ASSESSEE AS WELL AS FORM 26AS FOR THE ASSESSMENT YE AR 2015-16 ALONG WITH THE COMPUTATION OF TOTAL INCOME IT IS FOUND TH AT SOME OF THE AMOUNTS OF INCENTIVE/COMMISSION FROM THE BANK WERE ALREADY SHOWN IN FORM 26AS FOR THE ASSESSMENT YEAR 2015-16 THOUGH THE SAME WAS ACTUALLY RECEIVED FOR THE YEAR UNDER CONSIDERATION. IT IS ALSO NOT IN DISPUTE THAT THE ITA 1033/JP/18 SHRI HARI OM BHATIA VS. DCIT 5 ASSESSMENT HAS BEEN DECLARING THE INCOME FROM INCEN TIVE/COMMISSION FROM THE BANK ON THE BASIS OF FORM 26AS WHICH MEANS THE INCOME WAS OFFERED AS THE SAME IS ACCRUED AND BECOME DUE FOR T HE YEAR UNDER CONSIDERATION. SIMILARLY WHEN SOME OF THE AMOUNTS B ECOME DUE AND ACCRUED IN THE PRECEDING YEAR I.E. ASSESSMENT YEAR 2015-16 AND WAS OFFERED TO TAX ON THE BASIS OF FORM 26AS THEN TO TH E EXTENT OF THE SAID AMOUNT WHICH HAS ALREADY OFFERED TO TAX IN THE PRE CEDING YEAR CANNOT BE TAXED AGAIN ON THE BASIS OF RECEIPT. THE ASSESSEE I S FOLLOWING THE CONSISTENT METHOD OF RECOGNIZING THE INCOME FROM IN CENTIVE/COMMISSION FROM THE BANK WHICH IS BASED ON ACCRUAL AND SHOWN I N FORM 26AS THEN THE CHANGE IN THE BASIS OF RECOGNIZING THE INCOME FROM ACCRUAL TO RECEIPT WILL AMOUNT TO DOUBLE TAXATION OF THE AMOUNT WHICH WAS A LREADY OFFERED TO TAX. HENCE TO AVOID THE DOUBLE TAXATION OF THE AMO UNT THE AO IS DIRECTED TO VERIFY THE NECESSARY DETAILS PERTAINING TO THE I NCOME WHICH WAS ALREADY OFFERED TO TAX IN THE PRECEDING YEAR AND IS AGAIN S HOWN AS PART OF THE RECEIPT OF INCENTIVE/COMMISSION AND ADDED TO THE IN COME OF THE ASSESSEE. ACCORDINGLY THIS MATTER IS SET ASIDE TO THE RECORD OF THE ASSESSING OFFICER FOR PROPER VERIFICATION OF THESE FACTS AND THEN ASS ESS THE CORRECT INCOME FOR THE YEAR UNDER CONSIDERATION AFTER EXCLUDING TH E INCOME WHICH WAS ALREADY OFFERED TO TAX FOR THE PRECEDING YEAR. ITA 1033/JP/18 SHRI HARI OM BHATIA VS. DCIT 6 IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALLOW ED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 01/11/2019. SD/- FOT; IKY JKO (VIJAY PAL RAO) U;KF;D LNL; @ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 01/11/2019 *SANTOSH VKNS'K DH IZFRFYFI VXZSFKR @ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ @ THE APPELLANT- SHRI HARI OM BHATIA KOTA. 2. IZR;FKH @ THE RESPONDENT- THE DCIT CENTRAL CIRCLE KOTA. 3. VK;DJ VK;QDR @ CIT 4. VK;DJ VK;QDRVIHY @ THE CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ @ DR ITAT JAIPUR 6. XKMZ QKBZY @ GUARD FILE (ITA NO. 1033/JP/18) VKNS'KKUQLKJ @ BY ORDER LGK;D IATHDKJ @ ASST. REGISTRAR