Subhash Chand Gulati vs. ITO, Ward 63 (1)

Parties Involved

Facts Summary

The assessee, Subhash Chand Gulati, is an individual engaged in a manufacturing business under the proprietorship concern 'Sapan Hosiery'. The return of income for the Assessment Year 2022-23 was filed on 05.11.2022, declaring a total income of Rs.4,94,360/-. The tax audit report in Form 3CB-3CD dated 01.09.2022 was furnished along with the return. The return was processed under section 143(1) of the Income-tax Act, 1961 on 01.02.2023, wherein the CPC treated GST refund amounting to Rs.3,98,152/- as taxable income and recomputed the total income at Rs.8,92,510/-. The assessee filed a rectification application, and the Assessing Officer confirmed the recomputation and demand of Rs.88,750/- through a rectification order dated 19.11.2024 under section 154 of the Act.…

Legal Issues

• 1. Whether the GST Input Refund amounting to Rs.3,98,152/- should be treated as income of the Appellant.
• 2. Whether the order passed under section 154 of the Income-tax Act, 1961 rejecting the rectification application is appealable.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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