SHRI RAMESH VENKATASWAMY,RANIPET vs. ITO, WARD-1,, VELLORE

This appeal instituted by the assessee is against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, for the assessment year 2020-21, vide order dated 13.02.2024.

The sole grounds of appeal raised by the assessee is the Ld.CIT(A) has erred in confirming the addition of :-2-: ITA. No: 1068/Chny/2024 Rs.12,27,000/- as excess claim of deduction under Chapter VI A of the Act.

At the outset, we find that there is a delay of 3 days in appeal filed by the assessee, and considering the short delay in filing of appeal by the assessee in the interests of justice, we condone delay in filing of appeal and admit appeal filed by the assessee for adjudication.

The assessee is an individual and has filed his return of income for the A Y 2020-21 on 04.01.2020 by declaring a total income of Rs.20,80,590/- by claiming a refund of Rs.14,980/-. Subsequently, the revised return has been filed 29.05.2021 by claiming a deductions under Chapter VIA of the Act, declared a total income of Rs.12,04,160/- by claiming a refund of Rs.2,88,450/-. The case was selected for complete scrutiny for the reason that, the return has been revised and large refund has been claimed by showing lesser taxable income compared to the original return of income filed.

During the assessment proceedings, the AO noted that, the assessee had claimed deductions U/s.80C, 80CCD(1B), 80CCD(2), 80D, 80DD, 80E, 80EEA, 80GG, 80GGC, while filing the revised return of income and sought for the details / documents in support of such claim. The Assessee filed replies from time to time and pleaded before the AO to ignore the revised return filed, as the revised return was filed under the misguidance of the tax consultant and consider the original return filed as return of income for the purpose of proceeding with the scrutiny assessment. However, the AO was not convinced with the reply of the assessee and made an addition of Rs.12,27,000/- to the total income declared in the revised return and concluded the assessment by passing an order U/s.143(3) r.w.s.144 B of the Act, on 16/09/2022. Aggrieved by the order of the AO, the assessee preferred an appeal before the ld.CIT(A).

The Ld.CIT(A), was pleased to confirm the order of the AO by dismissing the appeal of the assessee on 13/02/2024. Aggrieved by the order the Ld.CIT(A), the assessee is before us.

The Ld.AR of the assessee, stated that, the assessee is a salaried person working at BHEL, had filed his return of income by declaring Income from salaries as per the Form 16 provided by the employer and the taxes has been duly deducted at source by the employer. However, the revised return has been filed by claiming the deductions under chapter VIA of the Act, by following the wrong guidance given by the tax advisor, which was not intentional. The Ld.AR further stated that, the assessee during the assessment proceedings has clearly accepted the error of filing the revised return and prayed for ignoring the same and to consider the original return for the purpose of completing the assessment under section 143(3) of the Act. However, the AO has not considered the plea of the assessee and passed the Assessment order based on the revised return, which was filed wrongly and hence prayed for setting aside the orders of the lower authorities by directing the AO to accept the original return of income filed by the assessee.

Per contra, the Ld.DR supporting the orders of both the AO and Ld.CIT(A) stated that, the orders have been passed based on the revised return is as per the law and hence prayed for dismissal of the appeal of the assessee.

We have heard both the parties, perused the materials available on record and gone through orders of the authorities below. The scrutiny assessment of the assessee for the AY 2020-21 was carried out by the AO and framed the assessment considering the revised return filed by the Assessee, which was confirmed by the Ld.CIT(A). During the assessment proceedings, the assessee had prayed for ignoring the revised return, since the same had been filed with wrong guidance of the tax advisors and to consider the original return filed u/s.139(1) on 01.01.2020, wherein the total income filed was Rs.20,80,590/-. We note that, the assessee is an individual and having a salary income and filed the original return of Income based on the Form 16 issued by the employer. However, the revised return has been filed by the assessee based on the wrong guidance of the tax advisors and which had been brought to the notice of the AO, during the assessment proceedings and also prayed for considering the original return filed U/s.139(1) for assessment by ignoring the revised return of income filed. Therefore, we do not countenance the action of the lower authorities and hence, we deem it fit to set aside the order of the Ld.CIT(A) and direct the AO to accept the original return