ITAT: Income Tax Addition Unsustainable Where Assessee Declares Income During Assessment Proceedings

The Income Tax Appellate Tribunal (ITAT) has deleted the addition made on account of commission income, holding that the same cannot be taxed twice once it has already been offered to tax during assessment proceedings. The Tribunal observed that although the assessee had initially failed to disclose the commission income in the return, the omission was subsequently rectified during the course of assessment.

During the proceedings, the assessee admitted the lapse and voluntarily disclosed the commission income, along with payment of applicable taxes. The Tribunal noted that the income had thus been duly brought to tax and formed part of the assessed income. In such circumstances, making a separate addition for the same amount would result in duplication and is not permissible under law.

Accordingly, the Tribunal held that the addition made by the Assessing Officer was unsustainable, as it would lead to double taxation of the same income. The ruling reinforces the principle that once income is properly disclosed and taxed, it cannot be subjected to further addition merely on account of earlier non-reporting.