INCOME TAX ACT, 1961

Section 254

Appeal (Tribunal) - Powers - Additional claim filed through revised computation -

Assessee had filed the original return of income belatedly. During the course of scrutiny assessment proceedings, assessee chose to file revised computation of income wherein there was a reduction in the realised foreign exchange gain as a result of which refund had become due to the assessee and requested the AO to consider its said revised claim. However, AO contended that assessee's claim through revised computation should not be considered since the original return was filed belatedly. Assessee contended that there were genuine causes for filing the return belatedly, i.e., the operations of assessee had been closed and audited financial statements not being available at the time of filing of return. Held: Although the AO could not be held in error for not admitting the assessee's claim through revised computation, the Tribunal can entertain such a claim. Therefore, in the interest of justice, issue was restored to AO with a direction to admit the claim of assessee which had been filed by filing a revised computation and allow the same if after proper verification and examination it was found to be correct and as per law.

Relied:Goetze (India) Ltd. v. CIT (2006) 284 ITR 323 (SC) : 2006 TaxPub(DT) 1528 (SC),CIT v. Pruthvi Brokers & Shareholders Pvt. Ltd. (2012) 349 ITR 336 (Bom) : 2012 TaxPub(DT) 2671 (Bom-HC)

REFERRED :

FAVOUR : In assessee's favour by way of remand

A.Y. : 2011-12

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