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2021 (10) TMI 460 - AT - Income TaxRectification applications filed u/s 154 - Assessee is a non-resident and hence the income earned outside India - salary earned outside India has been offered wrongly in the return of income and the same is a mistake apparent from record - HELD THAT:- There is no dispute with regard to the fact that the assessee is a non-resident. It is the submission of the assessee that the salary income was earned by him abroad and hence the same is not liable to tax under the Act u/s 5(2) of the Act. There is merit in the submission of the assessee that the A.O. could not assess an income, which is not liable to tax under the Income Tax Act even if it was offered by the assessee in its return of income. As rightly pointed out by Ld. A.R., there is no estoppel against law and, in our view, the income erroneously offered in the return of income would constitute mistake apparent from record. Accordingly, we set aside the orders passed by Ld CIT(A) in both the years under consideration and restore them to the file of the AO to examine the claim of the assessee raised in the petitions filed u/s 154 of the Act in accordance with the law. In respect of AY 2010-11, the assessee has filed revised return of income and if the said revised return of income is processed, then the issue would get settled. The AO may take appropriate action which suits him. Appeal of assessee allowed for statistical purposes.
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