ITAT Chandigarh overturns ₹26.69 lakh tax demand after double-counted commission income
In a recent ruling, the Income Tax Appellate Tribunal at Chandigarh cancelled a tax demand of ₹26.69 lakh after finding that the trader’s commission income had been counted twice. The decision underscores the importance of selecting the correct ITR form and reconciling Form 26AS with declared business income.
Why the right ITR form matters
Taxpayers must use the ITR form that reflects the nature of their income. An inappropriate form can lead to misreporting and disputes that inflate tax liabilities, even when the underlying income is correct.
Practical takeaways for taxpayers
- Choose the ITR form that matches the income stream and business structure.
- Cross-check Form 26AS entries with declared income to avoid duplication.
- Appeals or adjustments can provide relief when a double counting or misclassification is identified.
- Maintain clean books and verify commission and business income separately to prevent similar errors.
