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2023 (11) TMI 329 - AT - Income TaxDetermination of correct income - Scope of rectification u/s 154 - AO not reducing the income of the assessee in consonance with reduction of TDS credit thereon as per revised Form No. 26AS - Form 26AS had undergone change because of filing of revised TDS for the second time - income of the assessee is only FTS assessed on gross basis and assessee being a foreign company had not maintained books of account in India - request of the assessee was rejected by the CIT(A) on the ground that as per section 143(1) prima facie adjustment could be carried out by the CPC only for addition to income on the basis of Form 26AS and there is no scope for the revenue to reduce the income offered by the assessee. HELD THAT:- In this first revised 26AS, the income of the assessee reflected thereon is only Rs. 2,71,80,917/- but this income figure has not been considered by the ld CPC. Again, Form 26AS had undergone change because of filing of revised TDS for the second time by the aforesaid two deductors having great impact on the income and TDS of the assessee. Hence, the assessee had rightly brought out this fact before the ld CIT(A). We are unable to comprehend ourselves to accept the argument advanced by the ld DR as the provisions of section 154 of the Act are meant only to rectify any mistake apparent on record. The assessee in the instant case had duly brought to the knowledge of the ld CIT(A) that income of the assessee had been wrongly determined by the ld CPC and that the correct income figure of the assessee would be Rs. 2,90,10,368/- and TDS thereon of Rs. 29,78,210/-. Infact the provisions of section 154(5) of the Act also provides for reduction in the income of the assessee for which rectification u/s 154 could be done. If the contention of the revenue has to be accepted then the provisions of section 154(5) of the Act would become otiose. In any case, it is well settled that the revenue cannot be unjustly enriched and in genuine cases, the assessed income could very well go below the returned income. Reliance in this regard is placed on the decision of the Hon’ble Gujarat High Court in the case of Gujarat Gas Company [2000 (4) TMI 19 - GUJARAT HIGH COURT]. Similarly in the case of CIT Vs. Milton Laminates Ltd [2013 (3) TMI 192 - GUJARAT HIGH COURT] had held that assessed income could go below the returned income if the circumstances of the case so warrant. Thus we direct the ld AO to determine the income of the assessee and grant TDS credit - Decided in favour of assessee.
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