2013 (4) TMI 959 - AT - Income Tax

Summary

Issues Involved:
1. Validity of the revised return filed on 24.12.2007.
2. Correctness of the income assessed at Rs. 51,09,290/- as per the original return.
3. Applicability and interpretation of Section 143(3)(ii) of the Income Tax Act.

Summary:

Issue 1: Validity of the Revised Return
The appellant contended that the revised return filed on 24.12.2007 declaring an income of Rs. 33,30,939/- should be considered valid. However, the Commissioner of Income Tax (Appeals) held that this revised return was not valid. The Tribunal noted that the revised return was filed by the assessee's father and beyond the permitted time, thus it was non-est in the eyes of the law and considered only a waste piece of paper.

Issue 2: Correctness of the Income Assessed
The original return filed on 25.09.2007 declared an income of Rs. 51,09,290/-. The assessee argued that this was a mistake and the correct income was Rs. 33,30,939/-, as shown in the revised computation submitted during the assessment proceedings. The Assessing Officer (AO) and CIT(A) both upheld the income as per the original return, ignoring the revised computation. The Tribunal, however, emphasized that the AO is duty-bound to assess the correct income and should not take advantage of an inadvertent mistake by the assessee.

Issue 3: Applicability of Section 143(3)(ii)
The assessee argued that u/s 143(3)(ii), the AO has the power to correct the incorrect computation of income. The Tribunal agreed, stating that the AO must consider any evidence produced by the assessee and ensure the correct income is assessed. The Tribunal highlighted that substantial justice should not be defeated on technical grounds and directed the AO to compute the income based on the revised computation filed during the assessment proceedings.

Conclusion:
The Tribunal allowed the appeal, directing the AO to compute the income based on the revised computation of Rs. 33,30,939/- filed during the assessment proceedings, emphasizing the need for substantive justice over technicalities. The appeal was pronounced allowed in the Open Court on 16th April 2013.