ITR filed in old regime but tax paid in new; won case

In a recent case at the Income Tax Appellate Tribunal (ITAT) in Delhi, Mrs Sharma from Dilshad Garden, Delhi, faced a tax demand notice after her accountant mistakenly filed her Income Tax Return (ITR) under the old tax regime while she had paid taxes under the new regime. Mrs Sharma, unaware of the error, had hired her accountant to handle her ITR using the ITR-1 (Sahaj) form. The accountant incorrectly marked the new tax regime in the ITR, causing confusion between her ITR and tax payment.

Despite the due date for filing a revised and belated ITR having expired, Mrs Sharma filed a rectification request before CPC, Bangalore, and later an appeal before the National Faceless Assessment Centre (NFAC). NFAC rejected her case, leading her to appeal to ITAT Delhi. Tragically, Mrs Sharma passed away before ITAT Delhi could deliver a judgement. Her husband, Mr Sharma, continued their legal battle with the help of Advocate Upender Kumar, ultimately winning the case on September 15, 2026.

ITAT Delhi's quorum consisted of M. Balaganesh, an Accountant Member, and Sudhir Kumar, a Judicial Member. The ruling was delivered by chartered accountant Ashish Niraj, who emphasized that a small mistake by the accountant should not result in additional tax and interest liability for the taxpayer. The tribunal stated that Mrs Sharma could not be held responsible for the tax liability due to her accountant's clerical error.

As a result, ITAT Delhi directed the Income Tax Assessing Officer (AO) to compute Mrs Sharma's tax liability under the new tax regime, ensuring justice in her posthumous victory on September 15, 2026.