ITAT upholds AO's decision on income computation, directs review of refund claim, emphasizing duty to assist taxpayers.

The ITAT upheld the Assessing Officer's decision to reject the revised computation of income due to the belated filing of the original return. However, the ITAT allowed the appeal for statistical purposes and directed the AO to examine the assessee's claim for refund in accordance with the law and principles of justice, citing the duty of tax officers to assist taxpayers in securing reliefs. The case was restored to the AO for further verification and consideration of the refund claim.

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Issues:
1. Whether the Assessing Officer (AO) had the power to consider the revised computation of income when a revised return of income could not be filed due to the original return being filed belatedly.
2. Whether there can be any redressal to the grievance of the assessee at this stage.

Issue 1:
The appeal involved a case where the assessee, an Indian branch office of a Swedish company, filed a belated return of income for the assessment year 2011-12. During the assessment proceedings, the assessee submitted a revised computation of income, claiming a refund due to a reduction in foreign exchange gain. The AO rejected this claim, citing the belated filing of the original return. The argument centered around whether the AO had the authority to consider the revised computation. The ITAT referred to the judgment in Goetze India Ltd. vs. CIT, emphasizing that a fresh claim cannot be accepted during assessment proceedings. The ITAT upheld the AO's decision, noting that the AO had acted in accordance with the law.

Issue 2:
Regarding the second issue of redressal for the assessee, the ITAT considered the judgment of the Bombay High Court in CIT vs. Pruthvi Brokers & Shareholders Pvt. Ltd. The case highlighted that an assessee can raise additional claims before appellate authorities, even if not made before the AO. The ITAT differentiated between the powers of the AO and the ITAT, noting that while the AO cannot entertain a fresh claim, the ITAT can do so. Citing CBDT Circular No. 14 (XL-35) of 1955, emphasizing the duty of tax officers to assist taxpayers in securing reliefs, the ITAT decided to restore the issue to the AO. The ITAT directed the AO to examine and verify the assessee's claim for refund, allowing it if found correct and as per the law. The ITAT's decision was based on the principles of justice and administrative guidance.

In conclusion, the ITAT allowed the appeal for statistical purposes, restoring the issue to the AO for further examination and consideration of the assessee's claim for refund. The decision was made in line with legal precedents and administrative instructions, ensuring fairness and proper verification of the claim.

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