9911796707
TMI Blog2019 (9) TMI 1173X X X X Extracts X X X X X X X X Extracts X X X X ..... t had been awarded to the assessee firm on which sales tax had been deducted by the deductee at the time of payment of contract receipts to the assessee. Therefore, refund of sales tax shall have to be taxed in the hands of the assessee firm only. Since the assessee firm exist in assessment year under appeal and also declared business income in assessment year under appeal, there was no reason to show the impugned amount as income of Private Limited Company. It is well settled Law that income is to be taxed in the hands of person liable for taxation. Income is to be assessed in the hands of right person, even if wrong person paid tax. We rely on Judgment of Hon ble Supreme Court in the case of Ch. Atchaiah s case [ 1995 (12) TMI 1 - SUPR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ties including bank account of assessee firm transferred to the Private Limited Company. The sales tax number of assessee firm was converted into Private Limited Company and expenses including sales tax and relating to project/job work has been claimed by Private Limited Company and in the same way sales tax refund was shown as income of the Private Limited Company. It was, therefore, submitted that same income cannot be taxed twice. The A.O. however noted that since the contract has been awarded to the assessee firm and sales tax had been deducted by the deductee at the time of payment of contract receipts to the assessee, therefore, refund of sales tax should be taxed in the hands of the assessee firm. The A.O. accordingly made the additi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee firm only. Since the assessee firm exist in assessment year under appeal and also declared business income in assessment year under appeal, there was no reason to show the impugned amount as income of Private Limited Company. It is well settled Law that income is to be taxed in the hands of person liable for taxation. Income is to be assessed in the hands of right person, even if wrong person paid tax. We rely on Judgment of Hon ble Supreme Court in the case of Ch. Atchaiah s case 218 ITR 239 (SC). In this view of the mater, we do not find any justification to interfere with the Orders of the authorities below. This ground of appeal of assessee is dismissed. 4. In the result, appeal of Assessee dismissed. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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