“The object of assessment is to determine correct total income of the assessee. Accordingly, I am of the view that the right of the assessee could not be denied merely on accounting of technical errors.”
–Shri. B R Bhaskaran, Accountant Member, ITAT Bangalore
In an assessee-friendly ruling, the Income Tax Appellate Tribunal (ITAT), Bangalore bench has recently held that the tax benefits under the Income Tax Act, 1961 cannot be denied to the assessee solely for the reason that the assessee omitted to mention the details of exemption in his income tax return.
The assessee, a private limited company, omitted to mention the details of the exemption relating to him dividend income. The Assessing Officer found that the benefit cannot be granted to the assessee in the absence of details in the return. The said decision was confirmed by the first appellate authority.
Aggrieved by the orders of the lower authorities, the assessee approached the Tribunal for relief.
While allowing the second appeal, the Accountant Member Shri. B R Bhaskaran found that the assessee, out of ignorance or inadvertence has omitted to mention the details of exempt income in the relevant “Schedule EI”.
“So, the ignorance of the assessee or inadvertent mistake committed by the assessee should not come in his way in claiming exemption, which is otherwise allowable under the Act. It is also not a case that the assessee did not respond to the notice issued by CPC. The assessee has duly responded to the same, but it is the submission of revenue that the assessee should have filed a revised return of income. There is no dispute with regard to the fact that the assessee is entitled for exemption of dividend income. The object of assessment is to determine correct total income of the assessee. Accordingly, I am of the view that the right of the assessee could not be denied merely on accounting of technical errors. Hence there is a mistake apparent from record in not granting exemption claimed by the assessee. Accordingly, I am of the view that the said mistake deserves to be rectified,” the Tribunal said.
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