Incorrect ITR Filing: AO Cannot Punish Assessee for Bona Fide Mistake

Young Mens Welfare Society Vs ADIT (CPC) (ITAT Kolkata) Income Tax Appellate Tribunal (ITAT) in Kolkata has ruled in favor of a reassessment for the Young Mens Welfare Society. The Association of Persons (AOP) inadvertently filed their income tax return using ITR Form 7 instead of the appropriate ITR Form No.5, leading to taxation at maximum marginal rates without the deduction of expenses. The ITAT ordered a review of the case following the rejection of the assessee’s rectification application and the dismissal of their appeal by the Commissioner of Income Tax (Appeals). Analysis: This ...