ITAT Bangalore: Legitimate Deductions Cannot Be Denied for Non-Filing-Matter Remanded to Allow Form 16 Claims

Arun Kudur Vs ITO (ITAT Bangalore) In the case of Arun Kudur, the Bangalore ITAT dealt with a best judgment assessment u/s 144 where income was taxed based on Form 26AS due to non-filing of return and non-compliance with notices. The assessee later claimed that Form 16 (available on departmental records) contained eligible deductions and exemptions such as Section 10 exemptions, Section 16(iii), 80C, 80TTA, and house property loss, which were not considered by the AO. The Revenue argued that deductions cannot be allowed without filing a return (Section 80AC(5)), but the Tribunal emphasized a k...