Error in Online Income Tax Return deserves Rectification after Due Verification, Revenue can’t take Benefit of Factual Errors: ITAT [Read Order]

The Delhi bench of the Income Tax Appellate Tribunal (ITAT) has held that the error in the online income tax return shall deserve rectification after due verification and the Revenue cannot take the benefit of factual errors.

The assessee filed its income tax return. The assessee noticed the error in its computation of fringe benefits and moved a rectification application which was denied by the AO who was of the opinion that the online filed ITR cannot be rectified under section 154.The assessee’s application for rectification requesting to rectify the errors were also rejected by the department.

Aggrieved by the department’s action, the assessee approached the appellate authorities.

The solitary grievance of the assessee before the Tribunal was that the application under srction 154 of the Act was rejected by AO. The assessee filed the return disclosing income of Rs.3,24,970/- by showing the value of fringe benefits of Rs.2,28,160/-.

Allowing relief to the assessee, the Tribunal bench comprising Judicial Member Sandeep Gosain and Accountant Member N K Billaiya observed that “we are of the considered view that if any error has been tracked in filing the details of fringe benefits the same deserve rectification after due verification. Merely because the return was filed online would not allow the revenue to take the benefit of any factual error in the return so filed. In the interest of justice and fair play we restore the issue to the files of the AO. The AO is directed to verify the details and rectify the mistake, if any, as per provisions of the law.”

To Read the full text of the Order CLICK HERE

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