2024 (12) TMI 770 - AT - Income Tax

Rectification u/s 154 - understatement of income on account of commission income received without offering such receipt, whereas corresponding TDS was claimed - HELD THAT - We find that the assessee has filed all the details and the Assessing Officer, after examining such details, passed order under section 143(3) of the Act. We also find that it is not a fit case for making addition under section 154 of the Act for the reason that, whether or not the commission income 3,00,000, received by the assessee is taxable, has to be decided during the original assessment proceedings u/s 143(3) of the Act and not during the rectification proceedings u/s 154 of the Act. Even otherwise also, we find that the assessee, during the course of rectification proceedings, by way of written submissions dated 17/01/2017, intimated the Assessing Officer that an amoun received by the assessee from M/s. Parkson Graphics Pvt. Ltd. is in the nature of advance on which TDS was also deducted at ₹ 30,000, and hence, the Revenue ought to have no grievance in this regard. Considering the above facts, we hold that the AO was not justified in making addition - Assessee appeal allowed.

Summary

The Appellate Tribunal ITAT Nagpur allowed the appeal filed by the assessee against the order of the Commissioner of Income Tax for the assessment year 2012-13. The Tribunal held that the Assessing Officer was not justified in making an addition of Rs. 3,00,000 to the assessee's income. The impugned order was set aside, and the grounds raised by the assessee were allowed, directing the deletion of the addition.