Perks Links And Services Private Limited Vs PCIT (Bombay High Court)
Bombay High Court considered a writ petition challenging an order dated 29 January 2025 that rejected an application seeking condonation of delay in filing a revised/rectified return of income for Assessment Year 2018–19 under Section 119(2)(b) of the Income-tax Act, 1961. The petition also challenged an intimation dated 17 November 2019 issued under Section 143(1), by which a refund due to the assessee was reduced by ₹25,52,814.
The petitioner had filed its tax audit report for AY 2018–19 on 30 October 2018 and its return of income on 31 October 2018. Under clause 20(b) of the tax audit report, the auditor was required to report only employees’ contributions to specified funds under Section 36(1)(va) that were not paid within the due date. The correct amount of such unpaid employees’ contribution was ₹53,25,866. However, the tax auditor mistakenly reported a higher figure of ₹92,58,302 by including both employees’ contribution of ₹53,25,866 and employer’s contribution of ₹39,32,436.
Based on this audit report, the return was processed under Section 143(1) on 17 November 2019, and adjustments were made disallowing the entire amount of ₹92,58,302. The petitioner later realized that the audit report contained an error and that only the employees’ contribution ought to have been reported under clause 20(b). To correct this, the auditor filed a revised tax audit report on 27 May 2021, and the petitioner filed a revised/rectified return of income on the same date.
