Sunil Shigli Vs ITO (ITAT Bangalore)
Original Return Showed Bogus Claims, Updated Return Withdrew Them Post Show Cause – Tribunal Condones Minor Delay & Revives Appeal
Sunil Shigli, an individual employed with J.P. Morgan India Services Pvt. Ltd., filed return declaring income of ₹15,05,250 for AY 2022-23. Case was selected for scrutiny to verify large Chapter VIA deductions & refund claim.AO observed that Assessee had claimed exemption of ₹2,96,280 u/s 10(13A) (HRA) & deduction of ₹5,28,580 under Chapter VIA. When show cause notice was issued that why the above deduction claimed by the assessee should not be withdrawn, assessee filed an updated return wherein he withdrew the claim of exemption of Rs.2,96,280 u/s. 10(13A) as well as deduction of Rs.5,28,580 under Chapter VIA. The updated return was filed on 13.12.2023. However as the withdrawal of exemption was not suo motu, but only after issuance of notice u/s. 143(2) updated return was not accepted. Therefore the ld. AO while passing the assessment order held that assessee has claimed exemption u/s. 10(13A) as non-genuine and further the deduction under Chapter VI of the Act of Rs.5,28,580 is also found to be non-genuine, addition of Rs.8,24,860 was made in the assessment order dated 14.3.2024.
