2018 (5) TMI 2038 - AT - Income Tax

Revision of income - Computation of income on the basis of the income declared by the assessee in the revised return OR original return - AO sought reasons for revision to the lower income and the assessee neither furnished the required reasons before the Assessing Officer nor the CIT (Appeals) - CIT (Appeals) directing the Assessing Officer to adopt the returned income as against the income adopted by the Assessing Officer on the basis of original return - HELD THAT - We notice that the assessee has filed revised return in this case on 13.11.2013 declaring the total income. The AO without pointing out any infirmity in the said return computed the total income taking the figures of total income declared by the assessee in its original return. We find merit in the contention of CIT (A) has rightly directed the AO to compute the income of the assessee on the basis of the income declared by the assessee in the revised return and delete the addition of ₹ 1,45,47,670/-. Hence, in our considered view, the finding of the Ld. CIT (A) does not require any interference by this Tribunal. We therefore uphold the findings of the Ld. CIT (A) and dismiss this ground of appeal of the revenue.

Summary

Issues:
1. Appeal regarding the direction to adopt the revised income declared by the assessee.
2. Eligibility of a non-scheduled co-operative bank for deductions under section 36(1)(viia) of the Income Tax Act.
3. Discrepancy in computation of total income by the Assessing Officer.

Analysis:
1. The case involved an appeal by the revenue challenging the direction of the Ld. CIT (A) to adopt the revised income declared by the assessee. The assessee filed a revised return declaring a lower income, which the AO did not consider, leading to additions in the assessment. The Tribunal upheld the Ld. CIT (A)'s decision, stating that the AO should have computed the income based on the revised return, thereby dismissing the appeal by the revenue.

2. The revenue contested the eligibility of a non-scheduled co-operative bank for deductions under section 36(1)(viia) of the Income Tax Act. The Ld. CIT (A) allowed the deductions, which was upheld by the Tribunal. The grounds raised by the revenue were dismissed, affirming the eligibility of the bank for the deductions.

3. A discrepancy arose in the computation of total income by the Assessing Officer, leading to a challenge by the revenue. The Tribunal reviewed the facts, including the revised return filed by the assessee, and found that the AO had incorrectly computed the income based on the original return. The Tribunal agreed with the Ld. CIT (A)'s decision to adopt the revised income figure, thereby dismissing the appeal by the revenue.

In conclusion, the Tribunal upheld the decisions of the Ld. CIT (A) on all grounds, dismissing the revenue's appeal and affirming the computation of income based on the revised return filed by the assessee. The judgment highlighted the importance of considering revised returns and ensuring accurate computation of total income for tax assessment purposes.