The assessee’s return was processed under section 143(1), resulting in a demand as the exemption claimed was not recognised due to filing the return in an incorrect form. A penalty notice under section 221(1) was issued. On writ, the Court held that the assessee was aware of the defect, having corrected the return for the subsequent year, and had an effective remedy under section 154. Liberty was granted to the assessee to file an application for rectification, with a direction to the Department to consider permitting filing of the return in the appropriate form. (AY. 2013-14).