Technological challenges cannot justify harassing an assessee, Income Tax Department should improve its software to prevent future errors: SC
SC recently in the case of SUNIL BAKHT (Petition(s) for Special Leave to Appeal (C) No(s). 10305/2024) has held that technological challenges cannot justify harassing an assessee, Income Tax Department should improve its software to prevent future errors.
Let us have a short overview of the case:
Facts:
1. During the pendency of the present proceedings, there is a demand notice dated 28.05.2024 raised for the Assessment Year 2023-2024, as per which surcharge is computed at 37% and an erroneous demand of Rs. 62,85,070/- has been raised.
2. Learned counsel for the Revenue submits that this error is occurring as the Central Processing Centre (CPC) has not adopted the mechanism of deleting excess calculation as it is programmed to so calculate and raise a demand.
Hon SC held as below:
1. The technological impediment cannot be a reason for harassing an assessee year after year. Immediate steps must be taken by the Revenue to upgrade the software or take such other steps as may be necessary to ensure that such mistake does not occur in future.
2. For the Assessment Year 2023-2024, the Revenue shall take immediate steps and communicate the order of withdrawal of the excess surcharge amount within six weeks from the date of the receipt of the order.
3. The Central Board for Direct Taxes shall also take necessary steps for rectifying the software as the issue may not be resolved by the Jurisdictional Assessing Officer.
The copy of the order is as under:
