The single-member bench of the Income Tax Appellate Tribunal (ITAT), Varanasi held that the state can’t take undue benefit and allowed for rectification of typographical errors that occurred in the return filed by the assessee.
The assessee, Poorvanchal Vikas Foundation is a society, that filed its return of income. The return was processed under section 143(1) on 16.3.2016 accepting the return of income for the assessment year 2013-14 at Rs. 26,47,727/and for the assessment year 2014-15 at Rs. 27,79,249/-.
Theassessee filed an application under section 154 on 28.02.2018 for rectification of the mistake in the total income for both years. When no order was passed by the Assessing Officer on the said application under section 154, the assessee filed a revision petition under section 264 on 1.10.2019 for both years.
The revision petition under section 264, was not entertained by the Commissioner and the Assessing Officer has rejected the application filed under section 154 of the Act, vide order dated 29th January 2020 for both years. The CIT(A) has dismissed the appeals of the assessee.
The assessee contended that at the time of filing of return of income for those two assessment years, the assessee declared the income at Rs. 26,477/- and Rs. 27,792/-, respectively but the amount has been taken by the computer as well as by CPC at Rs. 26,47,737/- and Rs. 27,79,249/-, respectively. It was only a typographical mistake or maybe a technical error due to which the total income declared by the assessee was enhanced by 10 times.
The Tribunal viewed that the Assessing Officer was not supposed to take advantage of the ignorance or mistake of the assessee but was duty bound to assist the taxpayer in every reasonable way, particularly in the matter of claiming and securing relief.
It was observed that if the assessee has brought tothe notice of the Assessing Officer the typographical or technical mistake in the return of income, then the Assessing Officer was expected to verify the correctness of the total income of the assessee. T
Shri Vijay Pal Rao, judicial member while allowing the appeal set aside the matter for both the assessment years to the record of the Assessing Officer for reconsideration of the same after a proper enquiry and verification of the record to find out the correct facts about the income of the assessee for these two assessment years.
Sh. Ashutosh Chand & Sh. Ashutosh Bhardwaj appeared for the appellant and Sh. A.K. Singh appeared for the respondent.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
