Shyam Century Ferrous Ltd Vs ACIT (Meghalaya High Court)
In a move providing relief to Shyam Century Ferrous Ltd., the Meghalaya High Court has directed the tax authorities to accept a manually filed revised income tax return from the company. The decision addresses a situation where the company had mistakenly omitted to claim a deduction for profits from the sale of investments in its original digital return for the Accounting Year 2020-21.
Shyam Century Ferrous Ltd. initially filed its Income Tax Return on February 14, 2022, declaring a profit of Rs. 6,38,81,925/- from the sale of investments. This profit was duly disclosed under “Capital Gains.” However, the company inadvertently failed to reduce this profit by way of deduction in Schedule BP of the ITR, leading to an incorrect tax liability.
Upon discovering this error, the company filed an application under Section 154 of the Income Tax Act, 1961, for rectification. As no order was passed, an appeal was lodged with the Commissioner (Appeals) under Section 246A. The Commissioner, via an order dated January 11, 2024, dismissed the appeal, stating that such a mistake could only be corrected by filing a revised return or through an application under Section 264 of the Act, and was not an “error apparent on record” rectifiable under Section 154.
