India's Income Tax Appellate Tribunal Overturns Assessments

The Delhi bench of the Income Tax Appellate Tribunal (ITAT) allowed the appeal of taxpayer Paluri Raghavan Gopala for Assessment Year 2015‑16, holding that the assessing officer exceeded the limited‑scrutiny scope by investigating matters not mentioned in the notice and ignored a valid revised return. The tribunal deleted the tax department's additions and set aside the assessment.

The Bangalore bench of the ITAT ruled that denial of tax credit for tax deducted at source (TDS) solely because it was omitted in the original return is not sustainable. The tribunal affirmed that the credit must be granted on rectification, stating, “Since the assessee has not claimed while filing the original return of income, the tax credit cannot be denied…”. Both decisions clarify procedural limits for tax officials and protect taxpayer rights in India.