Question And Answer
Subject: Wrong Assessment Year selected while filing Income Tax Return Read more at:
Querist: CA. Ankit Tantia
Answered by:
Tags: ,
Date: June 4, 2023
Query asked by CA. Ankit Tantia

Dear all,

I had one query:

An assessee had himself filed his income tax return for the F.Y. 2014-15 and inadvertently shown Income of F.Y. 2015-16 in F.Y. 2014-15. There was no income in F.Y. 2014-15 as the assessee was unemployed. Later on Return of FY 2015-16 was filed with the actual income of FY 2015-16.

Can the return of income filed for F.Y. 2014-15 be deemed invalid by the Department and vacate the demand?

The return of income filed for F.Y. 2014-15 was filed erroneously and there was no income during the relevant financial year and thereby NO TDS, thus demand was raised.

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Answer given by

Refer Circular No. 14(XL – 35) 1955 dated 11th April 1955.
An admission in the return, if occurred or occasioned consequent upon a bona fide mistake, it can be corrected either by submitting the revised return, or explaining the mistake before the authorities. Assessee’s ignorance cannot be taken advantage of by the .The scope of the above circular is explained in CIT v. Ahmedabad Keiser- E.Hin Mills Co .Ltd (1981 128 ITR 486 (Guj.)(HC)(492), Parekh Bros v.CIT (1984) 150 ITR 105 (Ker) (HC)(118), Dattatraya Gopal Sathe v.CIT (1984) 150 ITR 460 (Bom.)(HC) (463-464) In CIT v. Mahalakshmi Sugar Mill Co. (1986) 160 ITR 920 (SC)(928)
“There is a duty cast on the Income-tax Officer to apply relevant provisions of the Income -tax Act for the purpose of determining the true figure of the assessee’s taxable income and consequential tax liability. Merely because the assessee fails to claim the benefit of set-off, it cannot relieve the Income-tax Officer of his duty to apply section 24 in an appropriate case”
It is desirable to file revised return . If time limit is expired order under section 143(1) is passed , it may be advisable to file rectification or revision application before the Commissioner

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