"TO ERR IS HUMAN"

"TO ERR IS HUMAN"

GST returns are filed by human beings, True or False?

You know the answer but Department doesn't...!!

Errors are part and parcel when we work but Department in most of the cases tries to recover tax along with interest and penalties in such cases..!!

Courts are our savior in such cases.

1. Mahalaxmi Infra Contract Ltd. - Jharkhand High Court

High Court allowed petitioner to amend GSTR-1 & rectify the mistake of the wrong GSTIN mentioned against invoices as no loss to revenue.

2. Price Waterhouse Coopers Pvt. Ltd. - Supreme Court

(2012) 11 SCC 316 : (2012) 348 ITR 306

Assessee itself an internationally reputed accountancy firm having great expertise available to it. Assessee filing return with computational error.

Assessing Officer also failed to notice said error and passed the return.

HELD: Assessee had committed an inadvertent and bona fide error and had not intended to or attempted to either conceal its income or furnish inaccurate particulars.

3. Rajasthan State Electricity Board, Jaipur - Supreme Court

MANU/SC/0333/2020 : AIR 2020 SC 1722

Assessee filed return showing loss and due to a bonafide mistake Assessee claimed full depreciation on written down value of assets instead of seventy five percent depreciation.

Department disallowed 25% and demanded Additional Tax. Assessee pleaded for rectification and against additional tax as even after disallowance of 25% depreciation the return is still in loss.

HELD: The burden of proving that the Assessee had attempted to evade tax was on the Revenue. In the present case, not even whisper, that claim of hundred percent depreciation by the Assessee, twenty five percent of which was disallowed was with intend to evade tax.

Section 143(1-A) can only be invoked when the lesser amount stated in the return filed by the Assessee is a result of an attempt to evade tax lawfully payable by the Assessee. The mechanical application of Section 143(1-A) in the facts of the present case was uncalled for.

4. NRB Bearings Ltd. - Bombay High Court

High Court permitted assessee to rectify error in GSTR-1 which resulted in denial of ITC to recipient without revenue loss.

I hope you will find this useful.

Thanks

Abhishek Raja Ram

9810638155