In one of the case of firm while filing return of Income for AY 2022-23, interest paid to partners was added back to firm's income but inadvertently interest paid was not claimed as expenditure.
In this way taxable Income has increase and now date of filing revised return which is 31-12-2022 has also lapsed.
Can CCIT condone the delay of filing revised return u/s 119(2)(b) and if yes how to file the Income Tax return because system do not allow return u/s 119(2)(b) prior to 31-3-2024
Firm Misses Interest Deduction on Tax Return; Seeks Delay Condonation Under Section 119(2)(b) and Revision Under Section 264. A firm inadvertently failed to claim interest paid to partners as an expenditure while filing its income tax return for AY 2022-23, resulting in increased taxable income. The deadline for filing a revised return, December 31, 2022, has passed. The query seeks guidance on whether the Chief Commissioner of Income Tax (CCIT) can condone the delay under section 119(2)(b) and how to proceed since the system does not allow such returns before March 31, 2024. A response suggests checking if partners declared the interest as income and applying for revision under section 264 before the Commissioner of Income Tax (CIT). (AI Summary)
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