ACIT Vs Valvaya Capital Private Limited (ITAT Mumbai)
The ITAT Mumbai upheld that a revised computation of income can be accepted during assessment proceedings to correct a genuine mistake, even without filing a revised return.
In this case, the assessee had inadvertently omitted capital work-in-progress (₹5.70 crore) while computing capital gains under Section 50B (slump sale) in the original return. A revised computation was later filed during assessment to rectify the error.
The Tribunal observed:
- The revised computation was not a fresh claim, but merely a correction of an existing computation mistake.
- The omitted amount was already reflected in earlier balance sheets, establishing genuineness.
- AO rejected the claim only on technical ground (no revised return) without disputing merits.
The Tribunal held:
- Correct income must be assessed, and technicalities should not prevent rectification of bona fide errors.
- Filing of revised return is not mandatory where no new claim is made, only correction of computation.
A practical ruling; substance over form: genuine computational errors can be corrected through revised computation without insisting on a revised return.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
This is an appeal by the department, against order dated 27.10.2025 passed by National Faceless Appeal Centre (‘NFAC’ for short), Delhi for the assessment year (A.Y. for short) 2015-16.
