Clerical Error by Return Preparer Does Not Create Taxable Income: ITAT Delhi

JAI Singh Vs ITO (ITAT Delhi)

Summary: The appeal by the assessee was directed against the order of the Additional/Joint Commissioner of Income Tax (Appeals), Madurai dated 19.02.2026 for Assessment Year 2016-17. The solitary issue was the addition of Rs.21,62,360/- made by the Assessing Officer under section 68 of the Income Tax Act, 1961.

The assessee submitted that he owned agricultural land measuring 48 acres and that gross agricultural receipts during the relevant period were Rs.57,73,745/-. In the return of income, agricultural income was declared at Rs.79,36,105/- inadvertently after adding expenditure. During assessment proceedings, the assessee furnished details of agricultural land, jamabandi/fard, lease deeds and Form J in support of agricultural receipts. He explained that agricultural expenses of Rs.21,62,360/- had inadvertently been added to agricultural income instead of being reduced from gross agricultural receipts.

The Assessing Officer did not accept the explanation and made an addition of Rs.21,62,360/- under section 68 of the Income Tax Act, 1961. The CIT(A) sustained the addition, observing that although the assessee had furnished a certificate from the professional who had prepared the return and explained that the agricultural expenses were wrongly included while filing the return, no separate evidence was furnished to substantiate the agricultural expenses of Rs.21,62,360/-.