| The Tax Publishers2020 TaxPub(DT) 3111 (Jp-Trib) INCOME TAX ACT, 1961
Section 143(3)
Once interest income was assessed for assessment year 2014-15 and the assessee had not challenged the said order of AO, then the consequent effect of the assessment for the assessment year 2014-15 would be to exclude the same income for assessment year 2015-16 and AO had to remove the said anomaly in the assessment by excluding the said income for the assessment years 2015-16 as the income pertained to assessment year 2014-15 and was also accordingly, taxed as per law, therefore, assessee cannot be penalized only for the reason that he had not filed revised return of income for correcting the apparent mistake of double taxation of income.
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Assessment - Correct year of assessment - Interest income taxed in earlier assessment year -
Assessee was partner in various partnership firms and filed his return of income declaring certain interest income. Initially the assessment was processed under section 143(1) and subsequently it was selected for scrutiny. During the assessment proceedings, assessee submitted that interest income pertained to the assessment year 2014-15 and AO had added the same to the income of assessee for the assessment year 2014-15, therefore, the said income might be excluded from the income of the assessee. AO did not accept this submission of the assessee on the ground that assessee had not revised his return of income and therefore, the income cannot be assessed at the lower amount than the income declared in the return of income. Held: AO cannot take the advantage of any mistake on the part of assessee to offer an excess income which is otherwise not taxable under law. Once, the interest income was assessed for assessment year 2014-15 and the assessee had not challenged the said order of AO then consequent effect of assessment for the assessment year 2014-15 would be to exclude the same income for assessment year 2015-16. AO had to remove the said anomaly in the assessment by excluding the said income for the assessment years 2015-16 as income pertained to the assessment year 2014-15 and was also accordingly, taxed as per law. Assessee cannot be penalized only for the reason that he had not filed revised return of income for correcting the apparent mistake of double taxation of the income. In view of the above facts and circumstances of the case, the income which was already charged to tax for the assessment year 2014-15 on account of interest from partnership firms was deleted.
Relied:CIT, Delhi (Central) v. R. Dalmia (1982) 135 ITR 346 (Del) : 1982 TaxPub(DT) 0284 (Del-HC), Asstt. CIT, Circle-47, Kolkata v. Smt. Sharmila Kumar [ITA No. 679/Kol/2016] : 2018 TaxPub(DT) 2674 (Kol-Trib), Circle-8, Pune. v. Bajaj Finance Limited, C/o Bajaj Auto Limited [ITA Nos.288 to 291/PN/2014, dt. 29-1-2015]
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2015-16
IN THE ITAT, JAIPUR BENCH
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