2023 (5) TMI 788 - AT - Income Tax

Rectification of mistake u/s 154 - AO accepting the returned income instead of substituting the same with the assessed income - In order passed u/s. 143(3) r.w.s. 153A, AO had accepted the returned income without rectifying the figure of the assessed income, there was an apparent mistake in the order HELD THAT:- . We do not find any infirmity in the order of the CIT(A) on this issue. We find the ld.CIT(A) while upholding the action of the AO held that there is no change of opinion but a substitution of the last assessed income as per record and the demand not being a subject matter of 154 proceedings as it is identical to the demand raised in 153A proceedings. So far as the submission of assessee that the AO has made the addition in AY 2018-19 and therefore, the same could not have been rectified in the 154 proceedings is concerned, the same in our opinion is without any merit. In the original order, the AO had made the addition on the ground that assessee has deposited the money in the long-term capital gain account scheme beyond the due date and has also withdrawn the amount before the period of three years.

Although, the assessee has offered the income to tax in the AY 2018-19, however the AO has brought to tax the same in AY 2016-17 and the matter is still pending before the ld.CIT(A).

When there was an apparent mistake in the order of the AO in accepting the returned income instead of substituting the same with the assessed income there was an apparent error and the AO was fully justified in rectifying the same. The proposition of assessee that there cannot be addition of the same amount in two different assessment years is correct.

Merely, because the AO has retained the addition in AY 2018-19 as per the income retuned by the assessee, it cannot be said that the income cannot be brought to tax in AY 2016-17 especially when the appeal is still pending before the ld.CIT(A).Thus we do not find any infirmity in his order - Decided against assessee.