ITAT: Claim Made by Assessee to Assessment Stage After Receiving Revised Returns

The Income Tax Appellate Tribunal (ITAT), Ahmedabad ruled that Assessing Officer (AO) must take cognizance of the claim that the taxpayer made on the filing of revised returns and must move to the assessment stage.

The taxpayer, Kothari Brothers have furnsihed the income return dated 24.11.2007 which shows a total income of Rs 3,52,960. In the duration beneath the consideration, the taxpayer was involved in the transportation business on a contract basis and booking agents for the tanks, and the major business would function via placing its own lorries.

Notice under Section 143(2) of the Income Tax Act 1961, and was served upon the taxpayer.

Notice under Section 142(1) of the income tax act was given and served. The taxpayer furnished the submissions via its Counsel over time including the information.

In the assessment proceedings, the taxpayer was asked to submit the information of bank statement, a copy of the profit and loss account, balance, and its annexures as well as a copy of the audit report.

A Single Bench consisting of Suchitra Kamble, Accountant Member monitor that “Once the revised returns were filed, the Assessing Officer should take cognisance of the claim made by the assessee and accordingly should proceed in the assessment stage. Once the threshold of assessment proceedings based on original return filed by the assessee, the revised return should be taken into account and precondition to revise comes in consonance with the filing of the original return. “

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“Therefore, the appeal of the assessee is allowed to the extent that the Assessing officer should take cognizance of the revised return and if the claim of assessee related to set off of carry forward of earlier years’ losses are genuine, the same should be taken into account.”

Case Title	Kothari Brothers vs Income Tax Officer
Citation	ITA No.2251/Ahd/2018
Date	21.09.2022
Appellant by	Written Submission
Respondent by	Shri N.J. Vyas, Sr. DR
Ahmedabad ITAT	Read Order