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October 2023

Revision — Powers of Commissioner — Bonafide mistake by assessee including exempt income in the computation of income — Time for filing revised return barred — No restriction on the power of Commissioner to grant relief — Orders rejecting applications of the assessee for revision unsustainable — Matter remanded to Commissioner for reconsideration.

By K B Bhujle, Ritu Punjabi
Advocates
Reading Time 2 mins

50. Ena Chaudhuri vs. ACIT

[2023] 455 ITR 284 (Cal.)

A.Ys. 2007–08 and 2008–09

Date of order: 18th January, 2023

Section 264 of ITA 1961

 

Revision — Powers of Commissioner — Bonafide mistake by assessee including exempt income in the computation of income — Time for filing revised return barred — No restriction on the power of Commissioner to grant relief — Orders rejecting applications of the assessee for revision unsustainable — Matter remanded to Commissioner for reconsideration.

For the A.Ys. 2007–08 and 2008–09 the assessee inadvertently offered to tax exempted income relating to dividend and long-term capital gains and realized this only upon receipt of the order passed u/s. 143(1) of the Income-tax Act, 1961. Since the filing of the original return itself was delayed she could not file a revised return u/s. 139(5) for claiming a deduction of the exempted income and therefore, she filed revision applications u/s. 264 before the Commissioner. The Commissioner held that since the orders passed u/s. 143(1) were not erroneous, that since the original returns of income were filed beyond the specifi

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