Revised computation

[CASUNIL BHANSALI]

Wheather revised computation can be submitted during the proceeding u/s 143(2)? related to AY 2007-08 If yes pl specify the related provision/rules/clarifications/ circulars/ cases laws if any

[DEV KUMAR KOTHARI]

As per a judgment of the SC, in case of Goetz India Ltd, further claims, before AO cannot be made by way of letter. A valid return or revised return is necessary to make a claim before the AO. this judgment is also not always applicable, subsequent to this some high courts have taken view that a claim can be made by assessee and AO can entertain the same to make computation as per law. If the subject matter is bornout from records, and a revised computation is required to make assessment as per law, then the assessee can claim the same. The A.O. can be requested to consider revised computation of income as per law or to allow releif as per law. It is always advisable to give a note in computation or in coveing letter for further claims before the AO to allow all relief as per law, even if it is not claimed by assessee due to ignorance. Becasue AO is required to allow releif as per law. In case theA.O. do not allow the claim as being new, the CIT(A) may entertain it in appeal if the claim and relevant material is before the A.O.

[Mukesh Kumar]

Section 143(2) is for assessment. Therefore, it is the duty of the AO to make correct assessment. If you find there is some error during assessment proceedings, I think you can submit revised computing that may not be a revised return. But, where the revised computation leads to enhancement of assessment, it upon the facts and opinion of the AO to treat the increased income as escaped income or not. you may refer a case "2008 TMI - 30848 - DELHI HIGH COURT" address some issues in similar circumstances. There may be many cases but you need to search the cases.

AI Summary

Revised computation during assessment proceedings can be submitted if supported by records, though AO may treat increases as escaped income. Whether a revised computation may be submitted during assessment proceedings under Section 143(2) depends on competing authorities: one view requires a valid return or revised return to make additional claims before the AO, while another permits the AO to entertain additional claims if they are borne out of the records. Taxpayers should present claims in the computation or a covering letter; the AO may accept them but may treat any enhancement as escaped income, and an appellate authority may consider the claim if material was before the AO.