Case Law Details
Goodwill Management Pvt. Ltd. Vs DCIT (ITAT Bangalore)
The assessee, out of ignorance or inadvertence has omitted to mention the details of exempt income in the relevant ‘Schedule EI’. So, the ignorance of the assessee or inadvertent mistake committed by the assessee should not come in his way in claiming exemption, which is otherwise allowable under the Act. It is also not a case that the assessee did not respond to the notice issued by CPC. The assessee has duly responded to the same, but it is the submission of revenue that the assessee should have filed a revised return of income. There is no dispute with regard to the fact that the assessee is entitled for exemption of dividend income. The object of assessment is to determine correct total income of the assessee. Accordingly, I am of the view that the right of the assessee could not be denied merely on accounting of technical errors. Hence there is a mistake apparent from record in not granting exemption claimed by the assessee. Accordingly, I am of the view that the said mistake deserves to be rectified.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
The appeal filed by the assessee is directed against the order dated 18.9.2020 passed by Ld. CIT(A)-3, Bengaluru and it relates to the assessment year 2018-19. The assessee is aggrieved by the decision of Ld. CIT(AITA No.670/Bang/2020) in confirming the adjustment made to the total income in the intimation issued u/s 143(1) of the Income-tax Act,1961 [‘the Act’ for short].
2. The facts relating to the issue are stated in brief. The assessee filed its return of income declaring Nil income on 20.9.2018 and the same was processed u/s 143(1) of the Act on 10.6.2019. In the computation of income, the assessee had claimed dividend income of Rs.13.37 lakhs as exempt. However, the assessee omitted to fill the details of exempt in “Schedule-EI” in the Statutory return form prescribed for filing returns. It is pertinent to note that the assessee had mentioned that the dividend income of Rs.13.37 lakhs is exempt in “Schedule BP” relating to computation of “income from business or profession”. Hence, while processing return u/s 143(1) of the Act, the Centralised Processing Centre (CPC) did not grant exemption claimed by the assessee and accordingly, computed the total income of the assessee at Rs.13.37 lakhs. Accordingly, it raised demand upon the assessee.
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