Sachin Bhaskar Kurandale Vs ITO (ITAT Pune)
Procedural Lapse Not Fatal- Substance Over Form: Section 89(1) Relief Can’t Be Denied for Return-Filing Technicality
Pune ITAT (SMC Bench) set aside order of CIT(A) & remanded matter to AO for fresh adjudication of Assessee’s claim of relief u/s 89(1), holding that mere non-claim in last revised return cannot defeat a substantive claim made during assessment proceedings. In Sachin Bhaskar Kurandale Vs. ITO , Assessee, a salaried individual, had filed multiple revised returns & furnished Form 10E online during assessment. AO accepted income computation filed during proceedings but denied relief u/s 89(1) solely because it was not claimed in final revised return. Tribunal observed that when income shown in computation was accepted, claim embedded therein also deserved consideration. Without examining merits, ITAT held that interests of justice require fresh examination of relief u/s 89(1) after granting reasonable opportunity. Accordingly, impugned order was set aside & matter restored to AO for de-novo consideration. Appeal was allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT PUNE
This appeal filed by the assessee is directed against the order dated 02.04.2025 passed by Ld. Addl./JCIT(A)-6, Kolkata [‘Ld. CIT(A)’] for the assessment year 2017-18.
2. The appellant has raised the following grounds of appeal :-
“1. The ld.CIT(A) erred on facts and in law in denying the relief u/s 89(1) amounting to Rs. 1,56,662/-.
2. The ld CIT(A) erred on facts and in law in denying the relief u/s 89(1) and confirming the action of the AO in assessing the net tax liability at Rs. 3,03,931/- as opposed to Rs. 2,99,655/-.
3. The Assessee craves leave to add, alter, modify or substitute any of the ground of appeal at the time of hearing.”
3. Facts of the case, in brief, are that the assessee is an individual deriving income from salary and has furnished its return of income on 02.07.2017 declaring an income of Rs.15,75,530/-. Subsequently, the assessee revised the return for further three times. The case was selected for scrutiny through CASS. Statutory notices u/s 143(2) and 142(1) were issued to the assessee. During the course of assessment proceedings, through written submission furnished on 10.11.2019 the assessee requested before the Assessing Officer to consider the claim of relief u/s 89(1) of the IT Act and also furnished Form 10E online acknowledgement. The Assessing Officer accepted the computation of income but denied the claim of relief u/s 89(1) of the IT Act since it was claimed in the original return of income but was not claimed in the revised return of income. Accordingly, the Assessing Officer completed the assessment proceedings u/s 143(3) of the IT Act and vide order dated 11.12.2019 determining the total income at Rs.15,66,930/- however relief u/s 89(1) of the IT Act was not allowed to the assessee.
