Statutory exemption cannot be denied merely because of typographical error in filing the ITR: ITAT
CA Pratibha Goyal | Dec 12, 2022 |
Statutory exemption cannot be denied merely because of typographical error in filing the ITR: ITAT
Briefly stated the facts of the case are that the assessee electronically filed its return of income on 29.10.2018 which was processed by CPC, Bangalore u/s. 143 (1) of the Act.
While processing the return the CPC, denied the claim of deduction u/s. 10AA of the Act. Assessee moved an application for rectification u/s.154 of the Act. However, the application of the assessee was dismissed by the CPC stating as under:-
“Rectification application can be filed only to correct mistakes apparent from records. In this case, fresh claims of CFL is being changed in the rectification application. This change is not a mistake apparent from records. Hence, your rectification request cannot be processed.”
Assessee filed appeal before the CIT(A) but without any success.
Before the CIT(A) it was strongly contended that no fresh claim was made in rectification application and in-adverntently in the return of income the assessee has claimed deduction u/s. 10B instead of section 10AA of the Act which was a typographical mistake.
The CIT(A) was not convinced and was of the firm belief that the only way to get this claim is by filling a revised return not by filing rectification application before CPC.
Thus assessee has filed an Appeal with the Income Tax Appellant Tribunal (ITAT).
ITAT after giving thoughtful consideration to the orders of the authorities said that:
It is true that the assessee has claimed deduction u/s.10B of the Act in its return of income instead of seciton10AA of the Act. This can be a human error while preparing E-return. Even if the CPC declined to entertain a rectification application, it was incumbent upon the first appellate authority to consider the claim of the assessee as the power of the CIT(A) are co-terminous to that of the AO. In the interest of justice we deem it fit to restore the issue to the files of the AO.
Thus the AO was directed to verify the claim of the assessee u/s. 10AA of the Act as per the relevant provisions of the law and decide the issue afresh after giving a reasonable and sufficient opportunity of being heard to the assessee.
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