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2021 (6) TMI 326 - AT - Income TaxRectification of mistake u/s 154 - Assessment u/s 143(3) - whether authorities below have erred taking figure of income computed under section 143(1) as returned income by the CPC, instead of income declared by the assessee in the return filed on 29th September, 2020? - HELD THAT:- Though a detailed submissions has been made by the assessee before the first appellate authority, but ld.CIT(A) without going into the merit of the contentions raised by the assessee, summarily and in a cryptic way rejected the same and confirmed order of the ld.AO. CIT(A) ought to have considered the pleadings of the assessee before him and should have passed an order on merit. According to us the mistake is self-evident, and apparent from the record. For rectifying the mistake, the assessee filed rectification application under section 154, which was rejected by the AO on the ground that the same is barred by limitation. This foundational fact was not inquired into by both the authorities below in the course of rectification proceedings under section 154 of the Act, and simply dismissed the application on the ground of limitation. The assessee submitted before the ld.CIT(A) that the assessee has filed application under section 154 on 20.1.2017 against the order passed under section 143(3) on 13.11.2012. Rectification of an order can be made within 4 years from the end of the financial year in which the order sought to be amended was passed, therefore, in the present case period for filing the application expires only on 31.3.2017, and therefore, application of the assessee under section 154 is within the limitation period. As regards, the mistake pointed out by assessee in the impugned assessment order is concerned, as stated above, is self-evident and apparent on face of the record, and thus, the lower authorities are not justified in rejecting the application under section 154 of the Act of the assessee. Allow appeal of the assessee and direct the ld.AO to consider the income declared by the assessee in its return of income, while computing assessed income under section 143(3) of the Act. - Appeal of the assessee is allowed.
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