A revised income tax return (ITR) filed on April 7, 2018, by a taxpayer from Kalbadevi, Mumbai, for the assessment year (AY) 2017-18, triggered a prolonged tax dispute after it raised red flags within the income tax system. The taxpayer had originally filed the return on November 28, 2017, reporting a loss of Rs 1.59 lakh, but in the revised ITR, the taxpayer declared a loss of Rs 1.06 crore, a huge jump that led to an anomaly in the tax system and ultimately resulted in a long tax dispute.
Thus, the ITR was selected for scrutiny under Computer-Assisted Scrutiny Selection (CASS), and the income tax department issued notices under Sections 143(2) and 142(1).
