Updated ITR Filed Without Assessee’s Knowledge?
Nazneen Parvez Memon v. ITO, Ward-2(1), Pune. [I.T.A.No.1635/PUN/2025]
In this case, the learned counsel for the assessee submitted that the assessee had originally filed the return of income declaring a total income of ₹5,15,000/-, along with a self-assessment tax payment of ₹16,930/-. This return was duly processed under Section 143(1) of the Income Tax Act.
Subsequently, however, an updated return for the same assessment year was filed on 23.02.2023 through the Income Tax portal, declaring an increased income of ₹26,11,330/- and showing tax payable of only ₹1,338/-.
It was submitted that this updated return was filed without the assessee’s knowledge, and that the act was carried out by the assessee’s tax return preparer, who had been given access to the assessee’s OTP. The learned counsel contended that the updated return was filed erroneously and that the actual income of the assessee remained ₹5,15,000/-.
The learned counsel, therefore, prayed that an opportunity be granted to the assessee to appear before the Jurisdictional Assessing Officer (JAO) for verification of the correct income and for proper examination of the facts of the case.
On the other hand, the learned Departmental Representative (DR) argued that since the updated return was filed using the assessee’s PAN, the responsibility lay with the assessee, and hence, the CIT(A) had rightly dismissed the appeal.
The tribunal considered the rival submissions and perused the materials on record. The facts indicate that the assessee had filed the original return declaring income of ₹5,15,000/-, which was accepted under Section 143(1). However, an updated return for the same year was subsequently filed on 23.02.2023 under the assessee’s PAN, declaring significantly higher income.
The assessee contends that the updated return was filed by the tax preparer without his knowledge, due to sharing of OTP credentials, which resulted in an erroneous filing ossibly due to mixing up of client data. It is also submitted that such errors occasionally occur when assessees depend on return preparers and are not directly involved in the e-filing process.
Considering the above and in the interest of natural justice, and guided by judicial precedents which consistently hold that tax should be levied only on the income actually earned by the assessee, the tribunal found it appropriate to remand the matter to the file of the Jurisdictional Assessing Officer.
The JAO shall carry out necessary verification regarding the actual income of the assessee for the year under consideration, which shall be duly supported by documentary evidence. Thereafter, the JAO shall decide the issue in accordance with law after providing a reasonable opportunity of being heard to the assessee.
In the result, the appeal of the assessee was allowed for statistical purposes.
Updated ITR Filed Without Assessee’s Knowledge?
To download the order, Click Here.“The site is for information purposes only and does not provide legal advice of any sort. Viewing this site, receipt of information contained on this site, or the transmission of information from or to this site does not constitute an attorney-client relationship. The information on this site is not intended to be a substitute for professional advice.”