In CIT v. Mukund Bhawan Trust, the Bombay High Court held that an additional claim made by the Assessee is allowable even in the absence of revised return.
A bench of Justices Gangapurwala and A.M Badar clarified that the appellate authorities can admit such a claim under the provisions of the Income Tax Act, 1961.
In the present case, Assessee, a Trust, had raised additional claim which was not made in the return originally filed. The Assessing Officer held the same as not permissible in view of the Apex Court ruling in the case of Goetze India Limited vs. The Commissioner of Income Tax.
However, the Commissioner of Income Tax (Appeals) and the ITAT allowed the appeal filed by the assesse.
The department approached the High Court against the order of the lower authorities contending that the Assessee cannot raise an additional claim except by way of filing a revised return.
After hearing the both sides, the bench noted that the genuineness of the transactions in question so also its nature is not disputed by the Revenue. “the Commissioner (Appeals) has observed that the Assessee trust is enjoying exemption of income computable under Section 11(1B) of the Income Tax Act. From perusing the Assessment Order, it is apparent that the Assessing Officer was satisfied about the claim of the Appellant that the income declared in return under Section 11(1B) was done erroneously, as on this claim made by the Appellant during Assessment, no adverse finding has been made.”
Read the full text of the Order below.
