ITAT allows rectification of typographical error
It ruled that the assessing officer was duty bound to assist the taxpayer in claiming and securing the relief
ITAT allows rectification of typographical error It ruled that the assessing officer was duty bound to assist the taxpayer in claiming and securing the relief The Varanasi Bench of the Income Tax Appellate Tribunal (ITAT) has allowed for the rectification of typographical errors that occurred in the Income Tax Return (ITR) filed by the assessee. The single-judge bench comprising T...
ITAT allows rectification of typographical error
It ruled that the assessing officer was duty bound to assist the taxpayer in claiming and securing the relief
The Varanasi Bench of the Income Tax Appellate Tribunal (ITAT) has allowed for the rectification of typographical errors that occurred in the Income Tax Return (ITR) filed by the assessee. The single-judge bench comprising T Shri Vijay Pal Rao (judicial member) held that the state could not be allowed to take undue benefit in this regard.
The assessee, Poorvanchal Vikas Foundation, a society, filed its ITR, which was processed under the Income Tax Act in March 2016. The return was accepted for the Assessment Year 2013-14 at Rs.26,47,727 and for the Assessment Year 2014-15 at Rs.27,79,249.
The assessee filed an application in February 2018 under the IT Act for rectification of the mistake in the total income for both years. But when no order was passed by the assessing officer (AO), the assessee filed a revision petition in October 2019.
However, the revision petition was not entertained by the Commissioner of Income Tax (Appeals) and the AO, and it was rejected vide the January 2020 order.
The assessee contended that at the time of filing the ITR for the two assessment years, the assessee declared the income at Rs.26,477 and Rs.27,792, respectively. But the amount was taken by the computer as well as by CPC at Rs.26,47,737 and Rs.27,79,249. The assessee maintained it was a typographical mistake or maybe a technical error due to which the total income declared was enhanced 10 times.
The tribunal viewed that the AO was not supposed to take advantage of the ignorance or mistake of the assessee. On the other hand, he was duty bound to assist the taxpayer in every reasonable way, particularly in the matter of claiming and securing the relief.
The bench observed that when the assessee brought the typographical or technical mistake in the ITR before the AO, he was expected to verify the correctness of the total income of the assessee. He further allowed the appeal set aside by the revenue department for reconsideration.