ITAT Mumbai Sends Tax Appeal Back to CIT(A) After Typographical Error

The Income Tax Appellate Tribunal (ITAT), Mumbai Bench, has granted relief to Talati Property Consultants by restoring its tax appeal to the Commissioner of Income Tax (Appeals) for fresh consideration.

The assessee’s appeal against the assessment order for Assessment Year (AY) 2019-20 gave rise to the dispute. However, there was a clerical and typographical error in filing the Form 35 wherein the assessment year was mentioned as AY 2017-18.

During the appellate proceedings, the assessee submitted before the CIT(A) that the firm was constituted only in June 2017 and, therefore, no assessment could be made for A.Y. 2017-18. The assessee also contended that the appeal be considered as one for A.Y. 2019-20, being the relevant year in the present case.

Despite this clarification, the CIT(A) did not make any correction at that stage. The CIT(A) observed that since the assessee had chosen AY 2017-18 itself while filing the appeal, the appeal could not be modified and was liable to be dismissed. The assessee was directed to file a fresh appeal with the correct details.

The assessee, aggrieved by the order approached the ITAT. The assessee before the Tribunal submitted that the mistake was purely accidental. It was submitted that all the facts, grounds of appeal and issues raised are clearly related to AY 2019-20 and not AY 2017-18.

On perusing the records, the ITAT concurred with the assessee. The Tribunal noted that the wrong mention of the assessment year was only a typographical error and the appeal was on merits for AY 2019-20.

The ITAT observed that substantial justice should be done, not technical error. Thus, it set aside the order passed by the CIT(A) and remanded the matter back to the CIT(A) with directions to treat the appeal as relating to AY 2019-20 and decide the issues afresh on merits after giving a proper opportunity of being heard to the assessee.

As a result, the appeal was partly allowed for statistical purposes.