Nikon Finlease Pvt. Ltd. Vs PCIT-04 (Delhi High Court)
Delhi High Court allows taxpayer to file revised ITR, setting aside PCIT order that rejected condonation request over clerical error in original return; Delhi HC Sets Aside PCIT Order on Tax Return; Delhi HC Overturns Income Tax Order Rejecting Delay Condonation; Taxpayer Gets Chance to Correct Clerical Error in Return Filing
NEW DELHI: The Delhi High Court has set aside an order passed by the Principal Commissioner of Income Tax (PCIT) that had rejected a taxpayer’s application to condone the delay in filing a revised income tax return (ITR). The court found that a genuine hardship was caused to the petitioner due to a clerical error in the initial ITR filing, which led to its rejection by the tax department’s processing centre.
The case involved Nikon Finlease Pvt. Ltd., which had filed its ITR for Assessment Year (AY) 2022-23 on November 3, 2022. Subsequently, the Central Processing Centre (CPC) of the Income Tax Department flagged the return, stating it was defective under Section 139(9) of the Income Tax Act, 1961. The reason cited was that the ITR was not accompanied by a Tax Audit Report (TAR), which the CPC deemed necessary as the declared gross receipts exceeded Rs. 1 crore.
