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TMI Blog2022 (1) TMI 587X X X X Extracts X X X X X X X X Extracts X X X X ..... the AO. The AO shall examine the issue afresh after giving the assessee proper opportunity of being heard. In the result, this appeal by the assessee is allowed for statistical purpose. - I.T.A. No. 1847/Mum/2020 - - - Dated:- 6-1-2022 - Shamim Yahya, Member (A) Assessee by : None Department by : Anil Gupta ORDER Per Shamim Yahya, AM This appeal by the assessee is directed against the order of learned Commissioner of Income Tax (Appeals)-41 dated 16.09.2020 and pertains to assessment year 2014-15. 2. Grounds of appeal read as under:- 1. The Learned Commissioner of Income Tax (Appeal) erred in confirming the total income at ₹ 15,61,690/- as against the returned income of ₹ 84,24,408/-. 2. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re ITAT. 5. In a written submission, assessee has made following submission:- GROUND NO 1 and 2: The main and only ground of appeal is with respect to addition of ₹ 650000/- on account commission income received and not accounted by the appellant. The learned AO upheld that reasoning of AR was not acceptable as the commission was not credited to AR and loss account but was credited to purchase account as discount receivable. While making addition the learned AO advanced the logic that if nature of receipts is receivable TDS would not have been deducted, Hence the sum of ₹ 650000/- is added to the total income of the assessee as commission income not offered to tax. The learned CIT A 41, dismissed the appeal reje ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al through the assessee, earned @ of ₹ 5.00 per KGS from Fine Organics Industries Private Limited. The copy of the credit note 143/Mrach-14/13-14 dated 31st March 2014 from Fine Organics Chemical Industries Private Limited is attached herewith. (Refer Page No. 24). The only inadvertent accounting mistake was that instead of crediting ₹ 650000/- commission income separately to the Profit and Loss Account, it was reduced from purchase as if it was discount receivable from the customers and that did not have any impact on the revenue as the income was duly recognized. The appellant also claimed the TDS on such income in the return of income. It was not the case of the assessee that no income was recognized in revenue and IDS w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respect of discount income duly offered to tax. The appellant reiterated above facts to the learned CIT A-41, in its submission dated 07/09/2020 (Refer Page No. 30+33 of paper book.) The relevant para 2 of the letter dated 07/09/2020 is reproduced as under: 2.1 The learned Assessing officer erred in making as addition of ₹ 650000/- by way of undisclosed commission income. 2.2 Your honour will appreciate that the appellant regularly purchase goods from m/s Fine Organics Industries Pvt. Ltd. and Fine Specialty surfactants Pvt. Ltd. Sir, this two companies grant turnover discount to the appellant every 3 months ans it is the policy of the appellant to reduce the said discount from purchase Account. The Credit notes a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case, the addition made by the is confirmed and ground of appeal is dismissed . The appellant already offered the said commission income of ₹ 650000/- in the form of discount and credited to profit and loss account hence the addition of ₹ 650000/- is against the cardinal principle of taxation that there cannot be double taxation on the same source of income. In the light of above submissions the appellant prays your honour to drop the addition of ₹ 650000/- being commission income not offered to tax as confirmed by CIT A 41 and Direct learned AO delete the addition of ₹ 650000/- made as the commission income not offered to tax or such other directions as your honour deem fit. 6. I have heard the Ld. DR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... understanding of income in the return of income. The assessing officer has made addition of ₹ 69,280/- on account of disallowances. In response to the same was state that we do not want to press this ground before your honour and request for withdrawal of this ground of appeal. 7. I note that from the submissions, it is emanating that assessee has submitted that it was an error in accounting. The said receipt was actually entered as adjustment to the purchase, instead of separate credit receipt. It is submitted that there is no effect on the profit reflected. This submission need factual verification. If the submission is found to be correct, the contention can be accepted that there is no effect on profit shown and additio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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