2019 (3) TMI 1304 - AT - Income Tax

Appeal dismissed for failure to rectify error in tax filing under Income Tax Act 1961

M/s. Hisar Foils Pvt. Ltd. Versus The DCIT, Aaykar Bhawan, Hisar. Haryana.

M/s. Hisar Foils Pvt. Ltd. Versus The DCIT, Aaykar Bhawan, Hisar. Haryana. - TMI Issues:- Challenge to the rejection of application under section 154 of the Income Tax Act 1961.Analysis:1. The appeal was against the order confirming the rejection of the application under section 154 of the Income Tax Act 1961. The assessee filed a rectification application requesting the assessing officer to consider the FBT figure as per the profit and loss account. The assessing officer rejected the application citing a miscalculation by the assessee, leading to the department's non-involvement. The assessee did not file a revised return of income, resulting in the rejection of the application.2. The assessee contended that a system error occurred while importing FBT data, attributing it to another client's data. The mistake went unnoticed during the filing and assessment process. The assessee highlighted discrepancies in expenses, indicating the error in figures was realized later, after receiving a demand notice. The appellant's inability to revise the return within the specified time led to the application under section 154, which was rejected by the assessing officer.3. The Learned CIT(A) dismissed the appeal, emphasizing that the assessee had the opportunity to revise the return under section 139(5) before the assessment completion. As the assessee failed to rectify the error within the prescribed time limit, the appellate proceedings did not allow for revising the details in the return. The assessing officer's rejection of the application under section 154 was deemed appropriate as rectifying the details would amount to revising the particulars submitted by the assessee.4. Upon review, it was observed that the department had accepted the FBT figure declared by the assessee. The assessing officer was not at fault as the figure provided by the assessee was acknowledged. Any mistake in the income return, including FBT miscalculations, could have been rectified by filing a revised return as per the Income Tax Act. Since the assessee did not take steps to rectify the error through a revised return, the responsibility for the error lay with the assessee. Consequently, the Learned CIT(A) rightly dismissed the appeal, holding the assessee accountable for their actions.5. The appeal of the assessee was ultimately dismissed, upholding the decision of the Learned CIT(A) to reject the application under section 154. The judgment emphasized the importance of timely rectification of errors in tax filings and the responsibility of the taxpayer to ensure accuracy in their returns.