S. 54EC Error while efilling return will not negate the deduction

S. 54EC Error while efilling return will not negate the deduction

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S. 54EC Error while efilling return will not negate the deduction

Rajesh Hasmukhlal Shah v. ITO [2018] 95 taxmann.com 84 (Surat-Trib.)
The XML file containing computation of income from computerized return filing software uploaded on e-filing portal of income-tax Department for filing of return showed that the assessee has claimed deduction of Rs. 40 Lakh and Rs. 20 Lakh on account of investment in NHAI Bonds under section 54EC of the Act and Rs. 14.21 Lakh under section 54F.
The ITR-V being acknowledgement of return dtd. 02.08.2011 also even though showing total income at Rs. 20,51,448 but the same form shows tax payable at Rs. 0.
If there had not been such claim of deduction under section 54EC then, this acknowledgement should have shown tax payable on returned income shown at Rs. 4,31,975/- in this ITR-V, which means that the assessee did make claim but due to software generated error this claim is remained to be considered in e-processing of return due to technical error or software generated error in filing of e-return.
 The necessary evidence filed by the assessee before Assessing Officer as well as Ld. CIT (A) also evident the facts that the assessee has made investment in NHAI Bonds for claiming deduction under section 54EC.
The tax is leviable in accordance with law as in force. The revenue cannot take advantage of mistakes committed by the assessee. The tax cannot be collected merely because of mistake in belief or due to error, the assessee has failed offered or make such claim in the return or the assessee has not filed the necessary claim of return of income properly – Rajesh Hasmukhlal Shah v. ITO [2018] 95 taxmann.com 84 (Surat-Trib.)

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