Shree Govind Property & Investments Pvt. Ltd. Vs. D.C.I.T., Circle-5(1), Kolkata

Parties Involved

Facts Summary

The assessee company, Shree Govind Property & Investments Pvt. Ltd., filed its return of income declaring a total income of ₹1,60,39,320/- for AY 2018-19. The case was selected for limited scrutiny under Computer Assisted Scrutiny Selection (CASS) due to a large business loss set off against other heads of income. Notices under sections 143(2) and 142(1) of the Income Tax Act, 1961 were issued. The Assessing Officer (AO) noted that the assessee had earned income from house property and other sources, and incurred a current year’s loss under the head Profits and gains of business or profession. The AO accepted the returned income. Aggrieved by the assessment order, the assessee filed an appeal before the Commissioner of Income Tax (Appeals)-NFAC, Delhi (CIT(A)), claiming an inadvertent mistake in the original computation of income where exempt long-term capital gains were wrongly included as part of taxable share trading income. The CIT(A) dismissed the appeal, holding that the revised claim could not be entertained as no revised return was filed within the prescribed time limit.…

Legal Issues

• 1. Whether the order passed by the CIT(A) is bad in law.
• 2. Whether the CIT(A) failed to appreciate the appellant's mistake in reflecting exempt long-term capital gains under the wrong head of income.
• 3. Whether the CIT(A) erred in rejecting the revised computation of income on the ground that a revised return was not filed.
• 4. Whether an inadvertent mistake can be corrected during assessment proceedings without filing a revised return.
• 5. Whether no tax can be levied or collected without the authority of law.
• 6. Whether assessing authorities are bound to compute the correct income and collect only legitimate tax.

Judgment Outcome

Decided in favour of Revenue.

Precedents Relied Upon

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