New Delhi, Sept. 13 -- A small trader's error in choosing the wrong income tax return form led to a tax demand of Rs.26.69 lakh after the tax department treated commission receipts already included in his business income as additional income. The Income Tax Appellate Tribunal (ITAT), Chandigarh, has now deleted the entire addition.

The case concerned assessment year 2017-18 and involved commission earned by the taxpayer from selling mobile recharges and SIM cards. While declaring his business income, the taxpayer had filed ITR-4 instead of the applicable ITR-3.

The dispute started when the Centralized Processing Centre (CPC) processed the taxpayer's return under Section 143(1) of the Income Tax Act.

According to Form 26AS, the taxpayer...