Mistakes in ITR can be corrected only by revised return. CPC cannot go beyond ITR

Mistakes committed by assessee in return of income can be corrected only through a revised return of income. CPC cannot go beyond the return of income

In a recent judgment, Kerala High Court has upheld the judgment of the ITAT that mistakes committed by the assessee while filing the return of income can be corrected only through a revised return of income. The CPC cannot go beyond the return of income.

ABCAUS Case Law Citation:
4667 (2025) (07) abcaus.in HC

Important Case Laws relied upon by Parties:
Lions Nab Community Eyecare Centre v. DCIT

The appellant was charitable Trust hospital registered under Section 12A of the Income Tax Act, 1961 (the Act). It had filed a return of income for the assessment year 2017-2018, declaring nil income after claiming a deduction under Section 11 of the Act.

The said return was processed by the CPC under Section 143(1) of the Income Tax Act, whereby the anonymous donations included in Column No.22 of the return were brought to tax.

On receiving an intimation regarding acceptance of the return filed by the appellant, the appellant challenged the same in an appeal before the first appellate authority, contending that as a matter of fact, the appellant had wrongly shown a figure pertaining to anonymous donations in its return when there was actually no anonymous donations received by the appellant.

The first appellate authority, however, confirmed the order of the Assessing Officer (AO) by holding that the mistake in the return of income under the Income Tax Act could be corrected only by filing a revised return of income, and that not having been done by the appellant, the CPC was justified in bringing to tax the anonymous donations that were returned.

The appellant preferred a further appeal before the appellate tribunal.

However, the Tribunal dismissed the appeal observing that the CPC, while processing the return of income, can take into consideration only the information contained in the return of income and accompanied documents. The mistakes committed by the assessee while filing the return of income can be corrected only through a revised return of income. The CPC cannot go beyond the return of income.

Aggrieved, the assessee filed an appeal before the Hon’ble High Court contending that ITAT was not justified in dismissing the appeal the rectification filed within the time was still pending requesting to delete the human error of mistake committed while filing the annexure of the return ie., anonymous donations included in column No. 22 of ITR.

It was also contended that appellant being a charitable Trust registered u/s l2A is eligible to get income tax exemption, on whom an assessment done by denying to issue any rectification order by considering the rectification application was not justified.

However, the Hon’ble High Court held that the impugned order of the tribunal did not give rise to any substantial question of law, since the findings were entirely based on admitted facts. It was not in dispute that the appellant did not seek to correct the error in the first return by filing a revised return within the time permitted under the Income Tax Act. Under such circumstances, the assessing officer and the appellate authorities under the Income Tax Act cannot be faulted for completing the assessment on the basis of the voluntary return filed by the appellant.

The appeal was accordingly dismissed.

Download Full Judgment Click Here >>

• Receipts mentioning that it was towards corpus, donation assumed to be for corpus of trust
• Credit in partner’s capital account for book entry adjustments can not be added u/s 68
• Non-compliance of summons issued u/s 131 no ground to make addition u/s 68
• Assessee not obliged to demonstrate actual utilization of donation u/s 35(1)(ii)
• For Registration u/s 12AB, phrase “genuineness of activities” is interpreted liberally