February 2012
Rachna S. Talreja v. DCIT ITAT ‘D’ Bench, Mumbai Before J. Sudhakar Reddy (AM) and V. Durga Rao (JM) ITA No. 2139/Mum./2010 A.Y.: 2006-07. Decided on: 28-12-2011 Counsel for assessee/revenue : G. P. Mehta/ C. G. K. Nair
By Jagdish D. Shah, Jagdish T. Punjabi
Chartered Accountants
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Section 143 — Assessment — Assessee during the course of assessment proceedings filed revised computation of income and claimed additional deduction — Whether AO justified in refusing to consider the revised income and insisting that only by filing revised return u/s.139(5) the additional deduction can be claimed — Held, No.
Facts: The assessee had filed her return of income on 31-10-2006 declaring income of Rs.11.05 lakh. Subsequently, during the course of assessment proceedings, the assessee filed revised computation of income by claiming deduction on account of interest of Rs.2.1 lakh paid to a bank. The AO did not consider the revised computation of income filed by the assessee on the ground that there was no provision in the Act to file a revised computation of income. According to him, the assessee should file revised return of income as per section 139(5). On appeal, the CIT(A), relying on the Supreme Court decision in the case of Goetz India Ltd. (284 ITR 323) upheld the AO’s order.
Held:
The Tribunal noted that a similar issue had arisen before the Mumbai Tribunal in the case of Pradeep Kumar Harlalkar v. ACIT, (47 SOT 204) wherein the Tribunal following the decision in the case of Goetz India Ltd. observed that ‘power of the Appellate Authority to entertain claim in question was still there . . . . .’. In view thereof the Tribunal admitted the claim made by the assessee and restored the matter to the file of the AO with a direction to consider the revised computation of income filed by the assessee and decide the issue afresh.
