The Income Tax Appellate Tribunal (ITAT), Ahmedabad held that Assessing Officer (AO) should take cognizance of claim made by assessee on filing of revised returns and should proceed in assessment stage: ITAT
The assessee, Kothari Brothers filed return of income on 24.11.2007 declaring total income at Rs.3,52,960. During the period under consideration the assessee was engaged in the business of transportation on contract basis and booking agent for tanks and major business is operated by deploying own lorries. Notice under Section 143(2) of the Income Tax Act, 1961 and was served upon the assessee.
Notice under Section 142(1) of the income tax act was issued and served. The assessee filed submissions through its Counsel from time to time along with details. During the course of assessment proceedings, the assessee was asked to submit the details of bank statement, copy of profit and loss account, balance and its annexures and copy of audit report.
The assessee submitted the same. After taking cognizance of the details filed by the assessee along with submissions, the Assessing Officer made addition in respect of disallowance related to expenses amounting to Rs.75,484 which included diesel expenses, trip and driver allowance expenses etc. Being aggrieved by the assessment order, the assessee filed appeal before the CIT(A). The CIT(A) dismissed the appeal of the assessee. Hence the appeal has been preferred before the Tribunal.
A Single Bench consisting of Suchitra Kamble, Accountant Member observed that “Once the revised returns were filed, the Assessing Officer should take cognisance of the claim made by the assessee and accordingly should proceed in assessment stage. Once the threshold of assessment proceedings based on original return filed by the assessee, the revised return should be taken into account and precondition to revise comes in consonance with the filing of the original return. “
“Therefore, the appeal of the assessee is allowed to the extent that the Assessing officer should take cognizance of the revised return and if the claim of assessee related to set off of carry forward of earlier years’ losses are genuine, the same should be taken into account.”
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