Important key notes on Implementation of right claim under Income Tax Act

Last Updated On: Aug. 4, 2020, 7:30 p.m.



Here are the important key notes of implementing the right claim which we should all be aware of under the Income Tax Act in respect of association under “The Constitution of India”.

If an assessee has not claimed any deductions/exemptions before the authority, subsequently the assessee awarded that additional claim for deductions/exemptions could have been made for a particular deduction/ exemption on account of retrospective amendments or judicial pronouncements delivered and other reasons after filing the return.

In such cases, where the assessee has claimed before the authority where the time limit for filing revised returns has expired or in cases where returns cannot be revised, then Assessee can make a refresh application for revised claims for deductions/exemptions.


What if the authority accepts or does not accept?

The preamble of the Constitution states that every person has a fundamental right. Part III Fundamental Right of the Constitution of India under Article 19 (1) (c) read with (4) refers to the protection of certain rights. All citizen has the right to form their association shall affect the operation of any existing law as imposes, or prevent the state from making any law imposed. In the interests of the sovereignty and integrity of India or public order or morality, reasonable restrictions on the exercise of the right conferred by the said sub-clause.

Article 265 of the Constitution of India states that no tax shall be levied except by authority of law. Here, the tax shall be recovered where justifying/conforming to the law or to rules and even that a preferential allowance or rate given by a tax-payer does not give authority to the tax collector to recover more than what is due from him under the law.

Article 265 of the Constitution states that no tax shall be levied/collected except by the authority of law. It provides that not only levy but also the collection of a tax must be under the authority of some law. 

Tax laws are highly complicated, complex and the taxpayers find them difficult.


Assessee’s rights:

The Central Board of Direct Tax (CBDT) had issued a circular on Assessee’s right. The Circular states that

Officers of the Department must not take advantage of the ignorance of an assessee as to his rights. It is one of their duties to assist a taxpayer in every reasonable way, specifically in the matter of claiming and securing reliefs.

The Officers should take the initiative in guiding a taxpayer where proceedings or other particulars before them indicate that some refund or relief is due to him. 

This will benefit the Department and gives confidence in him that he may be sure of getting a square deal from the Department. The responsibility for claiming refunds and reliefs rests with assessee on whom it is imposed by law, officers should

 (a) Draw their attention to any refunds or reliefs to which they appear to be clearly entitled but which they have omitted to claim for some reason or other;

 (b) Freely advise them when approached by them as to their rights and liabilities and as to the procedure to be adopted for claiming refunds and reliefs.



Even if the provision of the section/s is wrongly mentioned by an assessee in the return of income, it is the noble duty of the Assessing Authority to properly instruct the taxpayer in a reasonable way and to provide the relief if due to assessee. This attitude rather will help the Revenue in assessing the income correctly. A piece of Correct advice by the Department would inspire the confidence of the public at large.


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