Loading judgment…
Facts
The assessee filed an original return declaring income of Rs. 5,15,000/-, which was processed u/s. 143(1). Subsequently, an updated return was filed declaring an income of Rs. 26,11,330/-. The assessee claims the updated return was filed without their knowledge by the tax preparer.
Held
The Tribunal noted that the assessee's updated return was allegedly filed without their knowledge due to errors by the tax preparer. In the interest of natural justice and to ensure tax is levied only on actual income earned, the issue was remanded back to the JAO for verification.
Key Issues
Whether the updated return filed without the assessee's knowledge was valid, and if the income declared in the original return was the correct taxable income.
Sections Cited
143(1), 143(1)(a)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE “SMC” BENCH : PUNE
Before: DR. MANISH BORAD
I.T.A.No.1635/PUN/2025 (Assessment Year : 2022-2023) Nazneen Parvez Memon, ITO, Ward-2(1), Pune. Plot No.8, Firdous Society, vs. Salisbury Park, Gultekdi, Pune, Maharasthra. PAN : CZVPM 8743 C (Appellant) (Respondent) For Assessee : Shri Sumit Mantri, (through virtual) For Revenue : Shri Sanjay Dhivare, Addl.CIT-DR Date of Hearing : 11.08.2025 Date of Pronouncement : 14.08.2025 ORDER
This appeal at the instance of assessee for the Assessment Year 2022-23 (A.Y.) is directed against the order of Ld. ADDL/JCIT (A)-2, Vadodara [“CIT(A)”], dated 25/04/2025 arising out of intimation u/s. 143(1)(a) of the Income Tax Act, 1961 (for short, 'the Act') dated 30/12/2023 framed by Centralized Processing Centre (for short, „AO‟).
At the outset, learned counsel for the assessee prayed that assessee in the original return has declared the income of Rs.5,15,000/- and paid self-assessment tax of Rs. 16,930/- and the return has been accepted u/s.143(1) of the Act. But subsequently, the tax preparer of the assessee has updated the return of the very same assessment year on 23/02/2023 declaring income of Rs. 26,11,330/- and tax payable of Rs. 1,338/-. This updated return filed on 23/02/2023 was without knowledge of the 2 ITA.No.1635/PUN/2025 (Nazneen Parvez Memon) appellant. He humbly prayed that assessee may be provided opportunity to go before the Jurisdictional AO (JAO) for necessary verification and to examination the correct income of the assessee for the year under consideration.
On the other hand, ld. DR submitted that assessee has himself updated the return with higher income, therefore Ld.CIT(A) has rightly dismissed the appeal of the assessee.
I have heard the rival contentions and perused the material on record. Under the given facts, where the assessee has filed original return declaring income of Rs. 5,15,000/- and after paying self-assessment, the tax return processed u/s. 143(1) of the Act. Subsequently, the ITR for A.Y. 2022-23 has been updated on the Income-tax portal on 23/02/2023 under the PAN of the assessee and the income of Rs. 26,11,330/- has been declared. Learned counsel for the assessee before me is contending that updated return filed on 23/02/2023 is without assessee‟s knowledge and it was just one time password shared with the office of tax preparer resulting into this updated return. It is submitted before me that the actual income is only Rs. 5,15,000/- and not Rs.26,11,330/-. Considering the facts of the case and also observing that assessee(s) are dependent on the tax return preparer for filing the return and sometimes merely by sharing one time password, such type of mistakes occur and the income of one of the clients is wrongly mentioned in the return of income of another client. In the interest of natural justice and also taking guidance of the judgment of Hon'ble Courts where it has been consistently held that assessee
3 ITA.No.1635/PUN/2025 (Nazneen Parvez Memon) should be subjected to tax only for the income earned during the year, I deem it appropriate to remand the issue on merits back to the file of Ld. JAO to carryout necessary verification and the claim of the assessee of actual income earned during the year which has to be duly supported by documentary evidence and, thereafter, Ld.JAO shall decide the issue in accordance with law after giving fair opportunity of hearing to the assessee to furnish the details. Thus, the grounds of appeal raised by the assessee are allowed for statistical purposes.
In the result, appeal of the Assessee is allowed for statistical purposes.