Sanjay Sharma L/H of Late Divya Kala Sharma vs Addl./JCIT

Per M. Balaganesh, Accountant Member:

This appeal of the assessee ar ise s out of the order of the ld. CIT(A)/Addl./JCIT-3, Chennai having DIN & order No. ITBA/APL/ S/250/2025-26/1087946169(1), dated 26.03.2026 against the order passed by CPC, Bengaluru u/s 154 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) on 03.02.2026 for the A.Y . 2024-25.

Though the asse ssee has raised several grounds of appeal before us, the only effective issue to be decided in this appeal is as to whe ther the assessee wo uld be eligible for income to be computed as per the new tax regime u/ s 115BAC of the Act in the facts and circumstances of the instant case.

We have heard the r ival submissio ns and perused the material availab le on record. It is no t in dispute t hat in the return of income filed by the assessee for A.Y. 2024-25, the accountant of the assessee had mentioned that return is filed under old tax regime even though the tax comp utation is made as per the new tax regime. Based on this, the ld. CPC processed the re turn and comp uted the tax liability as per old tax regime and raised demand on the assessee . The assessee filed a rectification applicatio n before the ld. CPC which stood rejected. The assessee preferred an appeal before the ld . NFAC. Before the ld. NFAC, it was clear ly mentio ned that computation of tax liability was made o nly under the new tax regime in the return but the accountant had erroneously mentioned in ITR-1 that assessee had chosen the o ld tax regime for computing the tax liability. All these facts are duly brought on record by the ld. NFAC. We find that assessee has duly computed the tax liability in the return under the new tax regime u/s 115BAC of the Act but wrongly stated in the IT R that she had not exercised the option of availing the new tax regime due to the mistake committed by her accountant while uploading the return. In our considered opinion, the assessee canno t be fastened with the tax liability for mere cler ical error committed by her accountant. Hence, in the interest of justice and fair play and co nside ring the totality of facts and circumstance s, we direct the ld. AO to comp ute the tax liab ility of the assessee for the year under consideration under the new tax regime. Accordingly, the grounds raised b y the assessee are allo wed.

In the result, the appeal of the assessee is allowed.