2023 (9) TMI 1749

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ONOURABLE THE CHIEF JUSTICE A clear case of a bona fide mistake not having been corrected by a revision of return, filed within time or an appeal or revision taken against the appropriate orders; is the question raised in the writ petition. 2. The assessee is concerned with assessment year 2016-17. A return of income was filed as is indicated at Annexure-2. The assessee showed Rs. 10,08,359/- as the salary/remuneration to partners of the firm at Column 38 of Annexure-2 return. In fact, as is evident from the Annexure-2 itself, there were only two partners one of whom alone was paid the remuneration of Rs. 3,54,000/-. The other expenses as indicated in the Profit and Loss Account produced at Annexure- 3 were other business expenses ent....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....as rejected, against which a revision petition was filed under section 264. The Principal Commissioner though finding the mistake to be inadvertent and the claim to be bona fide, rejected the writ petition. There the mistake was found to be a typographical error, possible of correction in a rectification application; unlike the present case, as we shall shortly indicate. 6. The learned Senior Counsel for the assessee specifically placed reliance on the decisions of the Hon'ble Supreme Court relied on, in the decision of the Madras High Court; Laxmibai v. Bhagwantbuva; (2013) 4 SCC 97 and Union of India v. Ajeet Singh; (2013) 4 SCC 186. Both the aforesaid decisions spoke of substantial justice being done when obvious failure of justice ha....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... come to the conclusion that those were in fact to be declared as 'Other Expenses'; wherein, there is specific indication that the assessee should specify the nature and amount. Hence, it cannot be said that even if it is a bona fide mistake, there can be a rectification made under Section 154. In such circumstances neither the order under Section 154 can be assailed nor can the rejection of a revision, from that order under Section 154.. 9. We are not in finding so, to totally frustrate the claim of the assessee. As has been rightly pointed out by learned Senior Counsel, Section 246A of the Income Tax Act, 1961 provides for an appeal even against an intimation under Section 143(1). The provision for filing a revised return is available ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....the bona fide mistake, thus bringing upon itself a massive tax liability. 11. This is perfectly the circumstance under which the Hon'ble Supreme Court in the cited decisions said that in sub-serving the cause of substantial justice, technical considerations have to be overlooked. The correction of a mere irregularity or trivial breach of law, cannot be frustrated by technical considerations and the endeavour should always be, to do real and substantial justice to the parties; which power is available to the Commissioner under Section 264. Though a rectification under Section 154 may not be permissible, in the facts of the case which, according to us requires a process of deduction, the Commissioner is clothed with such powers under Secti....