Ved Prakash Kathuria, Faridabad V. ACIT, Circle-2, Faridabad

ITA 6266/DEL/2019

AI Insights

The case involves Ved Prakash Kathuria, the appellant, who contested the decision of the CIT(A), Faridabad, regarding an incorrect declaration of interest income on an FDR in the income tax return for the assessment year 2015-16. The appellant initially declared the interest income as Rs.942,245 instead of the correct amount of Rs.94,253 due to a clerical error. The AO and CIT(A) did not accept the revised computation provided by the appellant, citing the Supreme Court's decision in Goetze (India) Ltd. vs. CIT, which restricts the power of the AO to make amendments to the return after it has been filed unless under specific circumstances not applicable here. The ITAT, however, found merit in the appellant's claim of a clerical error and restored the matter to the AO for re-assessment based on the correct figures from Form 26AS.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 121302 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 7 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-03-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 14-03-2023
• Assessment Year: 2015-2016
• Appeal Filed On: 23-07-2019
• Other Referred Cases: Goetze (India) Ltd. Vs. CIT 284 ITR 323
• Laws Referred To: Income Tax Act
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Keywords: FORM 26AS

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘H’, NEW DELHI BEFORE SH. N. K. BILLAIYA, ACCOUNTANT MEMBER AND SH. ANUBHAV SHARMA, JUDICIAL MEMBER ITA No.6266/Del/2019 Assessment Year: 2015-16 Ved Prakash Kathuria 11 DLF Industrial Estate Phase-2, Faridabad Haryana -121001 PAN No.AAJPK4643C Vs ACIT Circle-2 Faridabad (APPELLANT) (RESPONDENT) Appellant by Ms. Gunjan Jain, CA Respondent by Sh. Girish Kumar Kohli, Sr DR Date of hearing: 15/03/2023 Date of Pronouncement: 15/03/2023 ORDER PER N. K. BILLAIYA, AM: This appeal by the assessee is preferred against the order of the CIT(A), Faridabad dated 17.06.2019 pertaining to A.Y.2015- 16. 2. The solitary grievance of the assessee is that the CIT(A) erred in ignoring the fact that the assessee has mistakenly filed return of income with interest on FDR amounting to Rs.942245/- instead of Rs.94,253/-. 3. Briefly stated the facts of the case are that the assessee filed its return of income on 28.12.2015 declaring income of 2 Rs.19046500/- after claiming deduction under chapter VI-A of the Act. On 28.12.2015 the assessee revised his return of income. The return was selected for scrutiny assessment and during the course of assessment proceedings the assessee submitted that due to clerical mistake interest on FDR of Rs.94,253/- has been shown as Rs.942245/- and in support furnished Form 26AS. This revised computation was not accepted by the AO who drew support from the decision of the Hon’ble Supreme Court in the case of Goetze (India) Ltd. Vs. CIT 284 ITR 323. 4. Assessee challenged the action of the AO before the CIT(A) but without any success. 5. Before us the Counsel for the assessee reiterated what has been stated before the lower authorities. 6. The DR relied upon the findings of the AO. 7. We have carefully considered the orders of the authorities below. The undisputed fact is that the clerical error in showing the interest income on FDR has been accepted by both the lower authorities but at the same time relying upon the decision of the Hon’ble Supreme Court (supra) the error was not rectified. 8. In the interest of the justice and fair play we restore this issue to the files of the AO. The AO is directed to verify from Form 26AS correct amount of interest on FDR and decide the issue afresh after taking the correct figure of interest on FDR as per Form 26 AS and after affording reasonable opportunity of being heard to the assessee. 9. In the result, the appeal is allowed for statistical purpose. 3 10. Decision announced in the open court on 15.03.2023. Sd/- Sd/- [ANUBHAV SHARMA] [N.K. BILLAIYA] JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 15.03.2023 *Neha* Copy forwarded to: 1. Appellant 2. Respondent 3. CITi 4. CIT(A) 5. DR Asst. Registrar ITAT, New Delhi Date of dictation 15.03.2023 Date on which the typed draft is placed before the dictating Member 16.03.2023 Date on which the typed draft is placed before the Other member 16.03.2023 Date on which the approved draft comes to the Sr.PS/PS 16.03.2023 Date on which the fair order is placed before the Dictating Member for Pronouncement 16.03.2023 Date on which the fair order comes back to the Sr. PS/ PS 16.03.2023 Date on which the final order is uploaded on the website of ITAT 16.03.2023 Date on which the file goes to the Bench Clerk 16.03.2023 Date on which file goes to the Head Clerk. The date on which file goes to the Assistant Registrar for signature on the order Date of dispatch of the Order