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Income Tax Appellate Tribunal, DELHI BENCH ‘E’, NEW DELHI
Before: SH. N. K. BILLAIYA & SH. SANDEEP GOSAIN
This appeal filed by the assessee is preferred against the order of the CIT(A)-28, New Delhi dated 13.11.2017 for A.Y. 2006-07. 2. The grievance of the assessee read as under :- 1. That under the facts and circumstances of the case and in law, the learned CIT-A has grossly erred while confirming the demand of Rs. 3,12,530/- on account of fringe benefit tax on the basis of income tax return filed for the assessment year 2006-07 by recording incorrect facts and making irrelevant observations. Therefore, the demand raised as such may be liable to be deleted.
That under the facts and circumstances of the case and in law the appellant denies the FBT liability to be assessed on a total expenses of Rs. 9,50,288/- and accordingly denies the liability to pay tax and interest demanded thereon. As such, the impugned orders may be liable to be quashed.
3. That the appellant, crave leave to amend, alter, add or delete any of the forgoing grounds of appeal.
The solitary grievance of the assessee show that the application u/s. 154 of the Act was rejected by AO. The assessee filed the return disclosing income of Rs.3,24,970/- by showing the value of fringe benefits of Rs.2,28,160/-. Under the head ‘computation of fringe benefits and tax thereon’ the assessee has mentioned the following details :-
The assessee noticed the error in its computation of fringe benefits and moved a rectification application which was denied by the AO who was of the opinion that the online filed ITR cannot be rectified u/s.154.
We have carefully considered the grievance of the assessee. We are of the considered view that if any error has been tracked in filing the details of fringe benefits the same deserve rectification after due verification. Merely because the return was filed online would not allow the revenue to take the benefit of any factual error in the return so filed. In the interest of justice and fair play we restore the issue to the files of the AO. The AO is directed to verify the details and rectify the mistake, if any, as per provisions of the law.
In the result, the appeal filed by the assessee is allowed for statistical purpose.
Decision announced in the open court in the presence of both representatives on 15.12.2021.