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2022 (8) TMI 263 - Income Tax
Rectification of mistake u/s 154 - AO rejected the application on the ground that on careful consideration, it is noted that the rectification of mistake sought by the assessee does not come under the provisions of section 154 - HELD THAT:- Once the assessee has brought into notice of the AO that due to some typographical or technical mistake, the assessee has offered the income 10 times more to the actual income while filing the return of income. Then the AO is expected to verify the correctness of the total income of the assessee.
Though there is a remedy to revise the return but if the assessee could not revised its return of income within the period prescribed, it does not mean that there is no remedy for such a mistake leading to incorrect assessment. Even otherwise, if assessee has offered an income to tax by mistake or due to technical mal functioning of computer system, the appellate authority has the jurisdiction to rectify such mistake and particularly to avoid the assessment of the income which is not the real income of the assessee.
Accordingly, the mistake pointed out by the assessee in the applications under section 154 was required to be verified by the Assessing Officer from the bank account as well as the accounts maintained by the assessee. Prima facie it appears that for both the assessment years, the gross receipt of the assessee were not more than Rs. 32,000/- or Rs. 35,000/- and hence, the total income mentioned in the return of income and finally assess to tax at Rs. 2647740/- and Rs. 2779250/-, respectively for the assessment years 2013-14 and 2014-15 is not the real income of the assessee. Since neither the Assessing Officer nor the CIT(A) has verified the correct facts about the wrong income offered to tax by the assessee due to typographical mistake or technical mistake while filing the return of income therefore, the matter for both the assessment years are set aside to the record of the Assessing Officer for reconsideration of the same after a proper enquiry and verification of the record to find out the correct facts about the income of the assessee for these two assessment years and then assess the correct income of the assessee.