SMART CERAMICS PRIVATE LIMITED,CHENNAI vs. CORPORATE WARD 6(3), CHENNAI

During hearing of captioned appeal, Ld. AR submitted that the assessee filed wrong ITR forms which has led to wrong computation of income. The Ld. AR also submitted that correct schedules have been filled up by the assessee and rectification application as filed u/s 154 is pending for disposal by CPC. Thus, Ld. AR seeks early disposal of rectification application. The Ld. Sr. DR opposed the same on the ground that the assessee should file correct return of income after seeking condonation u/s 119(2)(b). Having heard rival submissions and upon perusal of case records, the appeal is disposed-off as under.

The assessee earned business income and also income under the head capital gains which were routed through Profit & Loss Account. Accordingly, it was required to make necessary computation in Schedule BP and Schedule CG in accordance with applicable provisions. But the assessee failed to fill up the schedules properly which led to processing of return without allowing the deduction to the assessee. The assessee filed rectification application several time without any success. Upon further appeal, Ld. CIT(A), vide para 9.10 of the impugned order, held that this issue could not be considered u/s 154 of the Act. Aggrieved, the assessee is in further appeal before us. 3. Quite clearly, it is the fault of the assessee in filling the correct schedules which has led to wrong processing of return of income since computerized processing is done on the basis of assessee’s inputs on ‘garbage-in garbage-out’ principle. However, taxes are to be collected as per the authority of law only and the revenue authorities could not take advantage of assessee’s mistake. Therefore, considering the principle of nature justice, we direct concerned jurisdictional AO / AO-CPC to allow the rectification of the return of income after verification of computation of income. The assessee is directed to fill the correct schedules and provide all the information / documents as required by the assessing authority to facilitate the same.

The appeal stand allowed for statistical purposes.