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2022 (12) TMI 938 - ITAT JABALPURRectification of mistake u/s 154 - seeking amendment in the Intimation u/s. 143(1)(a) in respect of the income claimed as wrongly returned, i.e., by way of a mistake - HELD THAT:- AO in the instant case would be required to decide as to whether the mistake in the return furnished by the assessee is, or lies, as claimed by him, in disclosing mistakenly additional income (Rs. 14.05 lacs) or, as inferred by the Revenue, in computing his tax liability incorrectly, i.e., corresponding to the additional tax liability on the said additional income. That the tax amount computed agrees with the income claimed as returned incorrectly, makes it an either or situation, so that, as afore-stated, either could be correct, and the same has to be determined in the conspectus of the case. The insistence of the Revenue on one, in preference to the other, without in any manner stating as to why it considers it as so, cannot be sustained. In fine, the same, i.e., the decision one way or the other ought to be a result of a considered opinion based on material on record, per a speaking order. The assessee in this regard, claims that the impugned income is of a non-existent business, “returned” by mistake, with his balance-sheet for the current year being in continuation of the closing balance-sheet for the immediately preceding year and, further, and similarly, the balance-sheet for the succeeding year also in agreement with that for that current year, so that all the three represent a continuum, even as additional income is only for the current year. This argument, surely valid and corroborative of his claim, made per submissions before the ld. CIT(A) do not find any mention in the impugned order. The matter, in view of the foregoing, is restored back to the file of the AO for adjudication afresh on merits and in accordance with law per a speaking order, after hearing the assessee, being also the mandate of sec. 154. Needless to add, the AO shall require the assessee to file all the required documents, which must be contemporaneous and proven, in support of his return of income. In this context we find on record (PB-1, pg. 9) a return for the current year reflecting the income claimed as correct, filed on 14/11/2018. How has the same been filed is not clear. Further, it may be, in view of our stating of either of the two mistakes as possible, both of which though simultaneously cannot be, does not make the issue contentious or debatable. We may clarify that we are conscious that the Intimation in the instant case was passed on 09/5/2013, while the rectification application under appeal is that filed on 27/11/2018, so that it is apparently outside the time limit u/s. 154(7). In Hind Wire Industries Ltd. v. CIT [1995 (1) TMI 2 - SUPREME COURT] it stood explained that the expression “from the date of the order sought to be amended” in section 154(7) was not qualified in any way, and it did not necessarily mean the original order: it could be any order including the amended or rectified order. The assessee has in the instant case, as afore-noted, made several applications, the first being on 07/7/2013, with the first responded to by the Revenue being dated 03/12/2015. The proceedings, accordingly, are valid.
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