2024 (1) TMI 751 - AT - Income Tax

Rectification of mistake u/s 154 against intimation u/s. 143(1) - assessee had filed original return of income in which certain erroneous figures were entered - Claim of exemption filled in the revised return - as per CIT(A) Revised return of income claimed to have been filed by the appellant was not authenticated - As per assessee appellant had committed a bonafide error in filing up the columns while filing the original return of income and hence, the appellant had filed a revised return of income also on the very same day, which even contains the e-filing acknowledgement number and therefore, the learned A.O. ought not to have rejected the petition for rectification - HELD THAT - We note that the assessee filed original return on 29.10.2013 showing NIL income and no refund was claimed. Subsequently the assessee filed revised return claiming refund of Rs. 55,623 which was not sent to CPC within the due date. CPC processed the original return on 12.03.2015. The assessee sent the Acknowledgement of Revised Return in ITR-V to CPC on 20.10.2017. The assessee filed rectification application on 16.08.2017. We note that the assessee had put the figures in the wrong column in its original return instead of appropriate column which is a mistake apparent from record. Considering the CBDT Circular No.14 XL 35 of 1955 dated 11.04.1995 cited by the ld. AR, the case is remitted back to the AO for rectifying the mistake in the original return filed by the assessee and decide the issue as per law. Appeal by the assessee is allowed for statistical purposes

Summary

Issues involved:
The appeal filed against the Order of CIT(Appeals) for the AY 2013-14 on grounds of incorrect processing of returns and refusal of rectification request.

Details of the Judgment:

1. Grounds 1-4 Rejection by A.O. and CIT(Appeals):
The assessee filed the original return of income on 29.10.2013, followed by a revised return on the same day. The CPC processed the original return, raising a demand. The rectification request was rejected by the AO and CIT(Appeals) stating no mistake apparent on record. The appellant's contention of technical mistake and filing a revised return was not considered, leading to the rejection of the appeal.

2. Submission by Appellant and AO's Decision:
The appellant submitted that errors in the original return were rectified in the revised return filed on the same day, resulting in a loss. Although the revised return was not authenticated by sending ITR-V to CPC, it was furnished to the AO, justifying rectification. The AO's refusal based on lack of authentication was challenged by citing relevant provisions and circulars.

3. Appellant's Argument and Remittance of the Case:
The appellant, a Charitable Trust, highlighted the mistake in filling figures in the return and the subsequent rectification request. Referring to CBDT Circular No.14 of 1955, assistance to taxpayers was emphasized. The case was remitted back to the AO for rectifying the mistake in the original return, considering the appellant's submissions and legal provisions.

4. Decision and Direction for Further Proceedings:
The appeal was allowed for statistical purposes, directing the AO to rectify the mistake in the original return and decide the issue in accordance with the law. The appellant was instructed to provide necessary documents and cooperate for a prompt resolution.

This judgment emphasizes the importance of rectifying mistakes in returns, considering technical errors, and providing taxpayers with a fair opportunity to address issues in compliance with legal provisions and circulars.