MUMBAI: A tax benefit claimed via a taxpayer in his revised income-tax go back cannot be denied outright via an income-tax (I-T) officer merely because the revised go back has been filed after factor of notice, income-tax appellate tribunal (ITAT) has mentioned.
However, the revised go back needs to be filed throughout the time limits set out within the I-T Act. This order of the Mumbai bench of the ITAT, passed on June 20, will supply relief to a number of taxpayers. When a mistake is made within the unique I-T go back, equivalent to not disclosing an revenue accurately or not claiming a tax deduction, phase 139 (five) the I-T Act lets in a revised go back to be filed to correct the errors.
Currently, the cut-off date for filing a revised go back is prior to the expiry of 12 months from the last day of the financial 12 months or prior to the crowning glory of I-T evaluate, whichever is earlier.
In this situation prior to the ITAT, Mahesh Hinduja had declared a total revenue of Rs four.91 lakh in his unique go back for the financial 12 months 2010-11. He later filed a revised go back mentioning a total revenue of Rs 6.24 lakh. In this revised go back he also disclosed long-term capital features (LTCG) of just about Rs 50 lakh. However, as he had invested 1.15 crore in a new residential area, he claimed a deduction underneath Section 54 of the I-T Act. Thus, capital features were not offered for tax.
Under the Act, if an funding is made in any other area in India, throughout the stipulated time frame, then the 'price of the brand new area' is deducted and best the steadiness component of the LTCG is taxable. Thus, if the amount of capital features is equal to or less than the cost of the brand new area, the entire sum of LTCG isn't taxable.
To be sure that the taxpayer has not underreported his revenue or paid much less tax, the I-T Act empowers I-T officers to factor a notice asking for further proof. As the revised go back used to be filed via Hinduja after he had gained a notice underneath phase 143(2), the I-T legit rejected his claim for deduction. The litigation in spite of everything reached the extent of the ITAT.
The ITAT noted that the I-T legit had rejected the revised go back of revenue as invalid but at the similar time had authorised the higher revenue offered within the revised go back, together with the LTCGs. Only the claim of deduction underneath Section 54 had been rejected. "The I-T official has adopted a very selective approach in respect of the revised return of income filed by the taxpayer," remarked the ITAT.
The ITAT held that the I-T Act does not bar a taxpayer from filing a revised I-T go back after factor of notice underneath Section 143 (2). Hinduja's case used to be despatched again to the I-T legit for analyzing and permitting the deduction, topic to the fulfilment of conditions prescribed for such claim.
However, the revised go back needs to be filed throughout the time limits set out within the I-T Act. This order of the Mumbai bench of the ITAT, passed on June 20, will supply relief to a number of taxpayers. When a mistake is made within the unique I-T go back, equivalent to not disclosing an revenue accurately or not claiming a tax deduction, phase 139 (five) the I-T Act lets in a revised go back to be filed to correct the errors.
Currently, the cut-off date for filing a revised go back is prior to the expiry of 12 months from the last day of the financial 12 months or prior to the crowning glory of I-T evaluate, whichever is earlier.
In this situation prior to the ITAT, Mahesh Hinduja had declared a total revenue of Rs four.91 lakh in his unique go back for the financial 12 months 2010-11. He later filed a revised go back mentioning a total revenue of Rs 6.24 lakh. In this revised go back he also disclosed long-term capital features (LTCG) of just about Rs 50 lakh. However, as he had invested 1.15 crore in a new residential area, he claimed a deduction underneath Section 54 of the I-T Act. Thus, capital features were not offered for tax.
Under the Act, if an funding is made in any other area in India, throughout the stipulated time frame, then the 'price of the brand new area' is deducted and best the steadiness component of the LTCG is taxable. Thus, if the amount of capital features is equal to or less than the cost of the brand new area, the entire sum of LTCG isn't taxable.
To be sure that the taxpayer has not underreported his revenue or paid much less tax, the I-T Act empowers I-T officers to factor a notice asking for further proof. As the revised go back used to be filed via Hinduja after he had gained a notice underneath phase 143(2), the I-T legit rejected his claim for deduction. The litigation in spite of everything reached the extent of the ITAT.
The ITAT noted that the I-T legit had rejected the revised go back of revenue as invalid but at the similar time had authorised the higher revenue offered within the revised go back, together with the LTCGs. Only the claim of deduction underneath Section 54 had been rejected. "The I-T official has adopted a very selective approach in respect of the revised return of income filed by the taxpayer," remarked the ITAT.
The ITAT held that the I-T Act does not bar a taxpayer from filing a revised I-T go back after factor of notice underneath Section 143 (2). Hinduja's case used to be despatched again to the I-T legit for analyzing and permitting the deduction, topic to the fulfilment of conditions prescribed for such claim.
ITAT: Can file revised return after notice issued by I-T
![ITAT: Can file revised return after notice issued by I-T]()
Reviewed by Kailash
on
June 22, 2018
Rating:
