Income offered and taxed in the proceedings before the Settlement Commission, cannot be taxed again in the proceedings u/s 143(3) of the Act
ABCAUS Case Law Citation:
ABCAUS 2944 (2019) (05) ITAT
The asssessee had challenged the order passed by the Commissioner of Income Tax (Appeals) in confirming the action of the Assessing Officer (AO) by sustaining the addition u/s 68 of the Income Tax Act, 1961 (the Act) on account of share application money received.
It was submitted that the assessee had moved an application before the Settlement Commission and the aforesaid addition presently in contest was already offered before the Settlement Commissions as included by way of additional income as reflected in the order of the Settlement Commission under ection. 245D(4) of the Act.
The assessee accordingly submitted that the income having already been offered before the Settlement Commission cannot once again be added in the regular assessment which will amount to double taxation.
The Tribunal expressed agreement with the contention of the assessee on principle that the same income if offered and taxed in the proceedings before the Settlement Commission, cannot be included once again in the present proceeding under section 143(3) of the Act.
Accordingly, the Tribunal remitted the issue back to the file of the AO for factual verification on this aspect.