Advent Infra Projects (P) Ltd. v. DCIT [ITA No.
400/JP/2018, dt. 8-7-2020] : 2020 TaxPub(DT) 2806 (Jp.-Trib.)
Post search return filed under section 153A had increased
losses due to correction of error noticed in original return --- Whether can be
considered by assessing officer/Commissioner (Appeals)?
Facts:
Arising out of a search; assessee a toll collector filed a
return increasing his losses by correcting the double addition of income tax
expense account on P&L account done erroneously. This was refused by
Commissioner (Appeals) citing no fresh claim can be entertained in return under
section 153A. Aggrieved assessee went in appeal to ITAT.
Held in favour of the assessee, that the Commissioner
(Appeals) was wrong in treating it as a fresh claim when it was only a
correction on the return noticed and applied. The time limit for a
rectification petition under section 154 was also active so lower authorities
ought to have given effect to the correction without giving a hyper technical
view to section 153A.
Editorial Note: The
plenary powers of Commissioner (Appeals) are wide enough to consider such valid
points on merits. Return filed under section 153A is to be treated akin to
return under section 139. Even on this basis it should have been allowed by
assessing officer himself in the first place.