Clerical error in tax challan cannot defeat deposit for correct assessment year or render appeal incompetent

A cheque deposited with an appeal, though described in the challan as relating to a different assessment year, was treated as payment towards the admitted tax for the relevant year because the error was only clerical. Once the true purpose of the deposit was accepted, there was no legal basis to deny its character as a valid tax deposit for that assessment year. The deposit had to be assessed by its substance, not the mistaken year noted in the challan, and the appeal could not be rejected as incompetent on that ground.

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Issues: Whether the cheque tendered along with the appeal, though described in the challan as relating to another assessment year, could be treated as a deposit towards the admitted tax for the relevant assessment year so as to render the appeal competent.

Analysis: The amount tendered by cheque was found, on the accepted explanation of the assessee, to have been intended for the admitted tax liability for the relevant assessment year. Once the revisional authority accepted that the reference to the other year was a clerical mistake, there was no legal basis to deny the character of the payment as one made towards the admitted tax for the assessment year in question. The mistake was capable of being rectified, and the deposit had to be treated according to its true purpose rather than the erroneous description in the challan.

Conclusion: The cheque deposit was deemed to have been made towards the admitted tax for the relevant assessment year, and the appeal could not be rejected as incompetent; the answer was in favour of the assessee.

Ratio Decidendi: Where the true purpose of a tax deposit is established and an incorrect year is mentioned due to a clerical mistake, the deposit is to be treated as made towards the correct tax liability, and the assessee cannot be denied the statutory benefit on a mere misdescription.

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