Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2021 (10) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (10) TMI 236 - HC - Income TaxRevised computation v/s revised return of income- Rectified computation of income submitted during the course of assessment proceedings - Allowance of claim for deduction expenditure made through such revised computation and not through a revised return of income - claim of loss made by the assessee, as against the original loss claimed in the original return could have been entertained by the AO - HELD THAT:- Tribunal held that the assessee is only claiming expenditure, which was left out at the time of filing of original income tax return and in any event, the AO has power to make upward or downward adjustments in the income returned filed by the assessee and when the assessee had not claimed certain expenditures clearly evident from the records and it comes to the knowledge of the Assessing Officer at the time of assessment proceedings, the AO should grant relief to the assessee. Tribunal took note of the Circular issued by CBDT dated 11.04.1955, wherein the Board ordered that the officers of the Income Tax should not take advantage of ignorance of an assessee as to his rights. It is one of their duties to assist the taxpayers in every reasonable way, particularly in the matter of claiming and securing reliefs and in this regard, the officer should take the initiative in guiding a taxpayer, where proceedings or other particulars before them indicate that some refund or relief is due to him. Circular states that department should freely advise the assessee, when approached by them as to their rights and liabilities and as to the procedure to be adopted for claiming refunds and reliefs. Tribunal was convinced that the claim made by the assessee towards expenditure was not a fresh claim. Therefore, the Tribunal had exercised its powers conferred under Section 254 of the Act, which cannot be found fault with. Order passed by the Tribunal dated 18.11.2013 that the assessee's appeal has been allowed and but no consequential direction was issued to the Assessing Officer, which was required to be done. This is because the Assessing Officer non suited the assessee on a technical ground that such a claim for expenditure cannot be entertained, without filing a revised return. Tribunal having held that the claim is not a fresh claim and the computation given by the assessee can be considered, necessarily the matter has to go back to the Assessing Officer to consider the claim on merits. Since the Tribunal has not issued consequential direction, we are inclined to do so. Tax Case Appeal is dismissed and the substantial questions of law are answered as against the Revenue and the matter is remanded to the Assessing Officer to consider the assessee's claim of expenditure on merits
|