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TMI Blog2013 (3) TMI 288X X X X Extracts X X X X X X X X Extracts X X X X ..... o Rs.4,03,887/- was added back and disallowed in the computation of taxable total income which according to the respondent had been omitted to be disallowed while processing the return under Section 143(1) of the Act and the consquential levy of additional tax ? (2) Whether the Tribunal is correct in concluding that rectification of the intimation would consequently result in payment of additional tax even though intimation under Section 143(1) of the Act and rectification proceedings under Section 154 of the Act are totally different and distinct procedures envisaged in the Act ? (3) Whether the Tribunal is correct in law in affirming the rectification order passed under Section 154 of the Act to rectify the intimation issued under Secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an order passed under Section 154 of the Income Tax Act. A perusal of the said order of rectification passed by the Deputy Commissioner of Income Tax dated 30.8.1994 shows that certain adjustments were made in the intimation dated 29.4.1993 under Section 143(1)(a) of the said Act. The assessment was revised on 30.6.1993 thereby reducing the disallowance made in the intimation dated 29.4.1993. However, as provisions for Gratuity was omitted to be disallowed as no payments were made by the assessee on this account and as it was a mistake apparent from the records further revision was proposed by way of Section 154 proceedings. Before making such proposed revision, a notice under Section 154 dated 20.7.1994 was issued to the assessee calling ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 40A(7) and as such for having failed to carry out the prima facie adjustment in the intimation, the Assessing Officer had rectified the intimation with the consent of the assessee and as such the assessee is exigible to the payment of the additional tax. Consequently, the Tribunal agreeing with the first appellate authority, rejected the appeal filed by the assessee. 6. Learned counsel appearing for the appellant would contend that though the assessee did not object for making additions by way of rectification that itself would not entitle the Assessing Authority to levy additional tax automatically and therefore when such non-levy of additional tax is not an error apparent the same cannot be levied by way of rectification by passing an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the gratuity provision was accepted by the assessee. Therefore, the levy of additional tax is only a consequential event to the prima facie adjustment, which was carried out through the order passed under Section 154. The Assessing Authority had rightly levied the additional tax by his order under Section 154. When the rectification of mistake was carried out by making disallowance of gratuity provision and the same has not been objected by the appellant, the consequential levy of additional tax, which is only a sequence to the prima facie adjustment also cannot be objected by them. It is not the case of the appellant that the rectification of the mistake was carried out solely for the purpose of levying additional tax. On the other hand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... preme Court in the decision reported in (2008) 305 ITR 227 (SC) (Assistant Commissioner of Income Tax Vs. Saurashtra Kutch Stock Exchange Ltd.,) considered the scope and meaning of the words "mistake apparent on the face of the record". After elaborate discussion and by considering various decisions on this subject, the Hon'ble Supreme Court has observed that a patent, manifest and self-evident error which does not require elaborate discussion of evidence or argument to establish it, can be said to be an error apparent on the face of the record. The Hon'ble Supreme Court further observed that an error apparent on the face of the record means an error which strikes on mere looking and does not need a long drawn out process of reasoning on po ..... X X X X Extracts X X X X X X X X Extracts X X X X
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