Nararshabh Sharma Vs Assessing Officer (ITAT Pune)
ITAT Pune: Wrongly Filed Return Due to Consultant’s Error – Matter Restored for Correct Assessment – Tribunal Applies Article 265 – No Tax Without Authority of Law
Background
- Assessee, engaged in advertising & service contracts, handed documents to consultant for filing ITR.
- Consultant filed updated return u/s 139(8A) on 07.09.2023, declaring income of ₹31.66 lakh and claiming TDS ₹7.23 lakh.
- As per Form 26AS, actual TDS available was only ₹23,830.
- Correct computation filed before ITAT showed income of only ₹17.56 lakh.
- CPC processed return u/s 143(1)(a), raising demand of ₹13.13 lakh.
- Application u/s 154 seeking correction was rejected.
- CIT(A) upheld CPC’s view, holding return valid & not defective u/s 139(9).
Tribunal’s Observations
- The return contained wrong income & inflated TDS claim due to consultant’s mistake.
- Assessee even filed police complaint (15.01.2025) against consultant for misreporting.
- No statutory mechanism exists to revise an updated return under s.139(8A).
- Article 265 of the Constitution mandates that no tax shall be levied or collected except by authority of law; assessee cannot be taxed on income he never earned.
- Therefore, matter requires fresh assessment based on correct computation.
Decision
- ITAT set aside orders of CPC & CIT(A).
- Restored matter to Jurisdictional AO with directions to:
- Allow assessee to file correct computation or revised return,
- Verify documents & assess correct income.
- Appeal allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT PUNE
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