Taxpreparer files ITR-U showing Higher Income without Taxpayer’s Knowledge as OTP Shared: ITAT Remands for Verification [Read Order]
Taxpreparer files ITR-U showing Higher Income without Taxpayer’s Knowledge as OTP Shared: ITAT Remands for Verification
![Taxpreparer files ITR-U showing Higher Income without Taxpayer’s Knowledge as OTP Shared: ITAT Remands for Verification [Read Order]](https://images.taxscan.in/h-upload/2025/08/25/2080303-itr-u-higher-income-itat-taxscan.webp "Taxpreparer files ITR-U showing Higher Income without Taxpayer’s Knowledge as OTP Shared: ITAT Remands for Verification [Read Order]")
The Pune Bench of Income Tax Appellate Tribunal ( ITAT ) remanded a matter for verification where a tax preparer filed an updated Income Tax Returns (ITR-U) showing higher income without the taxpayer’s knowledge. Nazneen Parvez Memon, appellant-assessee, submitted that she had originally declared an income of Rs. 5,15,000 and paid self-assessment tax of Rs. 16,930, which was...
The Pune Bench of Income Tax Appellate Tribunal ( ITAT ) remanded a matter for verification where a tax preparer filed an updated Income Tax Returns (ITR-U) showing higher income without the taxpayer’s knowledge.
Nazneen Parvez Memon, appellant-assessee, submitted that she had originally declared an income of Rs. 5,15,000 and paid self-assessment tax of Rs. 16,930, which was accepted under section 143(1) of the Act. Later, her tax preparer filed an updated return on 23/02/2023 showing income of Rs. 26,11,330 and tax of Rs. 1,338, without her knowledge.
The counsel requested that she be allowed to appear before the Jurisdictional Assessing Officer for verification of her correct income.
The departmental counsel submitted that the appellant had updated the return with higher income on his own, and therefore, the Commissioner of Income Tax (Appeals)[CIT(A)] had rightly dismissed the appeal.
A single member bench comprising Manish Borad (Accountant Member) heard the rival contentions and perused the material on record. It noted that the assessee had filed the original return declaring an income of Rs. 5,15,000, paid self-assessment tax, and the return was processed under section 143(1) of the Act.
However, an updated return was filed on 23/02/2023 declaring an income of Rs. 26,11,330. The assessee’s counsel submitted that this updated return was filed without the assessee’s knowledge, as the one-time password was shared with the tax preparer, leading to the error.
Considering the facts and observing that such mistakes can occur when taxpayers rely on tax preparers, the tribunal held that, in the interest of natural justice, the matter should be remanded to the JAO for necessary verification.
The tribunal directed the officer to examine the assessee’s claim regarding the actual income, verify the supporting documents, and decide the issue in accordance with the law after providing a fair opportunity of hearing. The appeal was allowed for statistical purposes.
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