Case Law Details
Navneet Dutta Vs ACIT (ITAT Delhi)
The case of Navneet Dutta Vs ACIT was heard by the Income Tax Appellate Tribunal (ITAT) Delhi. The assessee filed an appeal against the disallowance of loss from house property and the rejection of the rectification application under Section 154 of the Income Tax Act. The ITAT allowed the rectification in the revised return, even though the original return was filed late. The issue was remitted to the Assessing Officer to consider the revised return and make an order in accordance with the law. This article provides an analysis of the case and its implications.
Analysis: The assessee filed a rectification application under Section 154 of the Income Tax Act, seeking to claim a loss from house property that was inadvertently not claimed in the original return. The assessee had filed a revised return to rectify the mistake, but the authorities rejected the claim, stating that it should have been made in the original return.
The ITAT noted that the only issue in this case was the inadvertent claim of lesser interest on a house property loan. The assessee attempted to rectify the mistake by filing a revised return. However, the authorities held that the claim could not be revised under Section 154 of the Act since it was not made in the original return.
In the interest of substantial justice, the ITAT referred to the decision of the Supreme Court in the case of Goetze (India) Ltd. vs. CIT and held that the powers of the ITAT to admit the claim otherwise than by a revised return were not impinged. Therefore, the ITAT allowed the rectification in the revised return and remitted the issue to the Assessing Officer to consider the revised return and make an order in accordance with the law.
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