Taxpreparer files ITR-U showing Higher Income without Taxpayer’s Knowledge as OTP Shared: ITAT Remands for Verification

The ITAT has remanded a case for verification after a tax preparer allegedly filed an updated income tax return (ITR-U) showing a higher income without the taxpayer's knowledge. The taxpayer had shared his OTP with the tax preparer for filing the original return. The tribunal's decision highlights the risks associated with sharing OTPs with third parties. The ruling clarifies that a tax authority cannot add a sum to a taxpayer's account for a mere technicality. The court’s decision is a crucial reminder to all taxpayers that they must be diligent in their dealings.