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2015 (10) TMI 523 - AT - Income TaxRectification of mistake - surrendered income which pertains to jewelry in assessment order u/s 143(3)- Held that:- As replying to question no. 14 of the revenue authorities, the assessee answered that jewellery worth ₹ 4,14,144 is her stridhan which she got at the time of her marriage and on other occasions. The balance jewellery worth ₹ 20 lakh was purchased by her. We further observe that in reply to question no. 15, the assessee submitted that the source of acquisition of jewellery is not explainable but the same may please be treated as her additional income for the year under consideration which has been spent on the purchase of jewellery. In this situation, we observe that the AO wrongly observed that the assessee surrendered income of ₹ 24,14,144/- on account of jewellery as undisclosed income and it was a mistake apparent from record in the light of statement of assessee recorded on oath during the search proceedings on 28.9.2007. Thus we come to a conclusion that the AO as well as CIT(A) were wrong in holding that there is no mistake apparent from record. Per contra, we are inclined to hold that there was a glaring mistake on the face of record in the light of statement of the assessee recorded on oath which could have been rectified by the AO by allowing application of the assessee filed u/s 154 of the Act but the AO as well as CIT(A) failed to grant justified and legal relief for the assessee. Accordingly, orders of the authorities below are set aside and AO is directed to pass appropriate order on the application of the assessee filed u/s 154 of the Act by affording due opportunity of hearing for the assessee. Therefore, the issue is restored to the file of AO with the above direction - Decided in favour of assessee for statistical purposes.
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