M/S Gayatri Pest Management Pvt.Ltd. Thru.Rajneesh Jain vs. Income Tax Officer 2 (1) Indore

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WP/915/2017HC Madhya Pradesh17 February 2017Bench: HON'BLE SHRI JUSTICE S.C.SHARMA2 pages
For Petitioner: Sumit Nema
AI SummaryRemanded

What did the High Court hold?

The Tribunal disposed of the writ petition with a specific direction. The Assessing Officer was directed to take into account Form 26AS, generated by the Income Tax Department, while passing the final order in the matter. This direction was issued based on the fair statement made by the learned counsel for the Income Tax Department. The Tribunal's decision implicitly acknowledges the potential for the discrepancy to be resolved by considering Form 26AS, thereby addressing the petitioner's concern about a clerical error. The core issue of the validity of reassessment proceedings was not definitively decided on merits but was to be addressed by the Assessing Officer in light of the directive to consider Form 26AS. No issue was expressly left undecided, but the final determination of the reassessment's validity was deferred to the Assessing Officer's order.

What were the facts?

The petitioner, Mr. Vibhash Khedekar, filed his income tax return electronically for Assessment Year 2009-2010 on September 29, 2009, declaring an income of Rs. 5,33,544/-. During the regular assessment under Section 143(3), he submitted computation of income, audited accounts, and TDS certificates. A minor addition of Rs. 50,000/- was made. Subsequently, a reassessment notice under Section 148 was issued on February 19, 2016. The petitioner objected to the reassessment, contending that a mismatch between TDS income and declared income in the computation schedule was a clerical error, not an escape of income. The petitioner sought a direction for the Assessing Officer to consider Form 26AS.

What were the issues?

1. Whether the reassessment proceedings initiated under Section 147/143(3) are valid, considering the petitioner's contention that the alleged mismatch in TDS income vis-à-vis income shown in the computation schedule is a clerical error and not an escapement of income? (Question of law and fact, concerning Section 147 of the Income Tax Act, 1961). Assessee's contention: The discrepancy is a mere clerical error in the computation schedule and does not constitute an escapement of income, thus invalidating the reassessment proceedings. The petitioner prayed for a direction to the Assessing Officer to consider Form 26AS. Revenue's contention: The revenue did not explicitly argue against the petitioner's claim regarding the clerical error but agreed to the prayer for considering Form 26AS. The learned counsel for the Income Tax Department fairly stated that the Assessing Officer would consider Form 26AS while passing the final order.

Which sections of the Income-tax Act were involved?

Section 147,Section 143(3),Section 148

AI-generated summary — verify with the full judgment below

- 1 - WP No. 915/2017 17-02-2017

Mr Vibhash Khedekar, learned counsel for the petitioner. Mr R.L. Jain, Sr. Counsel with Ms Veena Mandlik, learned counsel for the respondent Income Tax. The petitioner before this court has filed this present petition under article 226 of the Constitution of India challenging the reassessment order dated 26-12-2016 passed by the Income Tax Officer-2 (1), Indore u/s 147/143(3) of the Income Tax Act, 1961. The contention of the petitioner is that on 29-09-2009, the petitioner has filed his return electronically for the year 2009-2010 and has declared the income of Rs. 5,33,544/-. It has been further stated that during the course of regular assessment the petitioner has filed a print-out of computation of income, audited accounts and T.D.S. Certificates. It has been further stated that his total income was assessed u/s 143(3) under regular assessment and a minor addition to Rs. 50,000/- was made. The petitioner has further stated that reassessment notice u/s 148 was issued on 19-02-2016 and thereafter the satisfaction recorded by the Assessing Officer was also forwarded to the petitioner. The petitioner has raised an objection regarding mismatch of TDS income vis-a-vis income shown in the computation schedule and the contention of the petitioner is that it is only a clerical error in the schedule of computation and it is not a case of any escape of income. Learned counsel for the petitioner has made a prayer before this court for issuance of a direction directing the Assessing Officer to look into Form No.26AS generated by the department, while passing the final order in the matter. To the aforesaid prayer, the learned counsel appearing for the - 2 - Income Tax Department has fairly stated before this court that the Assessing Officer while passing a final order shall certainly take into account Form No.26AS which will resolve the discrepancy, if any in the matter. With the aforesaid, the present petition stands disposed of with a direction to the Assessing Officer to take into account Form No.26AS, generated by the Income Tax Department, while passing the final order in the matter. No order as to costs. Certified copy as per rules.

(S. C. SHARMA) J U D G E (RAJEEV KUMAR DUBEY) J U D G E Rashmi

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