ITAT orders mistake in ITR not a reason for the boost in income
It observed that the assessee trust was registered under the IT Act and eligible to claim a deduction
By: : Nilima Pathak
Update: 2022-04-17 16:00 GMT
ITAT orders mistake in ITR not a reason for the boost in income It observed that the assessee trust was registered under the IT Act and eligible to claim a deduction The Chennai bench of the Income Tax Appellate Tribunal (ITAT) has held that a mere mistake in the filing of an Income Tax Return (ITR) would not result in the enhancement of the income of an assessee. The assessee...
ITAT orders mistake in ITR not a reason for the boost in income
It observed that the assessee trust was registered under the IT Act and eligible to claim a deduction
The Chennai bench of the Income Tax Appellate Tribunal (ITAT) has held that a mere mistake in the filing of an Income Tax Return (ITR) would not result in the enhancement of the income of an assessee.
The assessee trust earned an income of Rs.517.39 lakhs and incurred an expenditure of Rs.555.57 lakhs for the object of the trust. The excess application of income was Rs.38.17 lakhs. However, the assessee disallowed an amount of Rs.48.69 lakhs and computed a net income of Rs.10.51 lakhs. This was offered to tax and due taxes were paid thereon.
Vide a March 2020 communication, the CPC proposed an adjustment of Rs.38.17 lakhs, as the additions were due to non-compliance with the provisions of the Income Tax Act. It said that the assessee could not avail exemption on the income.
The tribunal held, "Merely because there is a mistake in filing the corresponding columns in the return of income, the same would not result in enhancement of the assessee's income. Therefore, we direct the CPC to rectify the intimation and compute the income to tax at Rs.10,51,705 as offered by the assessee."