The Tax Publishers2021 TaxPub(DT) 0583 (Mum-Trib)

INCOME TAX ACT, 1961

Section 154

Where the assessee filed audit report before filing of ITR and as well as before due date of CPC but failed to mention name of auditor in CPC then merely on then basis the CPC disallowed exemption under section 11. Mere non-mentioning of the name of the auditor in the return of income was purely technical in nature and the assessing officer should not have rejected, the application under section 154 of the Act.

Rectification under section 154 - Denial of exemption under section 11 - Audit report in Form No. 10B filed belatedly -

The assessee filed its return of income for the assessment year 2014-15 on 30-9-2014 declaring total income at Rs. Nil. The said return was processed under section 143 (1) by the Assistant CIT (CPC) determining tax payable at Rs. 10,77,730. The appellant filed a rectification application against the above order, which was rejected by the Dy. CIT, CPC. It was submitted the assessing officer has brought to tax the entire income (without deduction of expenditure) and raised the demand of Rs. 10,77,730. It was stated that the appellant–trust got its accounts audited and the auditors have filed the audit report in Form 10B on 29-9-2014 and the return of income was filed on 30-9-2014. It was stated that while filing the return of income the assessee by oversight did not mention the name of the auditors in ITR – 7. Thus, it was submitted that the same being a mistake apparent from record, it is amenable to rectification under section 154 of the Act. Held: In the instant case, the appellant –Trust got its accounts audited and auditors have filed the audit report in Form – 10B on 29-9-2014. The return of income was filed on 30-9-2014. Mere non-mentioning of the name of the auditor in the return of income was purely technical in nature and the assessing officer should not have rejected, the application under section 154 of the Act.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2014-15



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