TMI Blog2013 (8) TMI 181X X X X Extracts X X X X X X X X Extracts X X X X ..... complete, there is no question of making any withdrawal from such statement. Schedule-F is not subject to any verification therefore, as against unverified statement in Schedule-F, the preference to verified statement on oath shall have to be given precedents and preference. Therefore, the claim of the learned counsel for assessee that assessee made a claim of exempt income in Schedule-F cannot be accepted. The assessee has made claim in application under Section 154 of the I.T. Act that the taxable income of the assessee should be revised and the A.O. should hold that the entire income of the assessee to be exempt, however, the A.O. has no such power to make the claim of the assessee acceptable by making a long drawn process of reasoning. Since no claim of deduction of exempt income has been made in the return of income and A.O. accepted the return of income filed by assessee as it is, therefore, there was no mistake apparent on record of the Revenue Department. Thus, the rectification application under Section 154 was not maintainable - appeal of the assessee dismissed. - ITA No. 73/Agra/ 2013 - - - Dated:- 24-5-2013 - Shri Bhavnesh Saini And Shri A. L. Gehlot,JJ. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... turn or incorrect claim would have been subjected to adjustment. The learned CIT(A), however, did not accept the contention of the assessee and dismissed the appeal of the assessee. The findings of learned CIT(A) in para 2.2 and 3 of the impugned order are reproduced as under :- 2.2. I have carefully considered the order of the AO and the argument of the appellant and also gone through the records. It is seen that even though the appellant has mentioned in Schedule F3 (ii) the amount of exempt income as ₹ 3,41,73,652/- but in part B(a) computation of total income at Sl. No.26 i.e. Total Income the amount of ₹ 3,41,73,652/- was inserted and not at Column No.24 i.e. which is for exempt income. Accordingly, the amount of total income as shown in the Return of Income was adopted by the AO while processing the return. Even if it is contended that the total income has been taken erroneously at the said figure by the appellant it cannot be said that AO had any means to examine such error while dealing with the return of income for the limited purpose of processing the return. It also cannot be denied that the return has been duly verified signed by the appellant. Havi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing adjustments, namely:-- (i) any arithmetical error in the return; or (ii) an incorrect claim, if such incorrect claim is apparent from any information in the return; (b) the tax and interest, if any, shall be computed on the basis of the total income computed under clause (a); (c) the sum payable by, or the amount of refund due to, the assessee shall be determined after adjustment of the tax and interest, if any, computed under clause (b) by any tax deducted at source, any tax collected at source, any advance tax paid, any relief allowable under an agreement under section 90 or section 90A, or any relief allowable under section 91, any rebate allowable under Part A of Chapter VIII, any tax paid on self-assessment and any amount paid otherwise by way of tax or interest; (d) an intimation shall be prepared or generated and sent to the assessee specifying the sum determined to be payable by, or the amount of refund due to, the assessee under clause (c); and (e) the amount of refund due to the assessee in pursuance of the determination under clause (c) shall be granted to the assessee: Provided that an intimation shall also be sent to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... having co-ordinate jurisdiction under section 154 of the Act as it could not be termed to be apparent from the record. 6.3 Hon'ble Punjab Haryana, High Court in the case of Punjab State Co-operative Supply Marketing Federation Ltd. Vs. Deputy Commissioner of Income Tax 173 Taxman 15 held as under :- Omission of the assessee to claim deduction on account of payment of the arrears of salary to its employees in the return or during the course of assessment proceedings is not a mistake apparent from the record and therefore s. 154 cannot be applied. 6.4 ITAT, Agra Bench in the case of Shri Sudhir Kumar Singh Vs. Income Tax Officer, ITA No. 172 of 2012 for A.Y.2008-09 vide order dated 30.11.2012 on identical issue in paras 4 5 held as under :- We have considered the rival submissions. Section 143(1)(a) provides that where the return has been made u/s. 139 or in response to a notice u/s. 142(1), such return shall be processed in the following manner : (a) The income or loss shall be computed after making following adjustments:- (i) Any arithmetical error in the return; (ii) The incorrect claim, if such incorrect claim is appare ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt while processing the return of income namely :- (i) any arithmetical error in the return; or (ii) an incorrect claim, if such incorrect claim is apparent from any information in the return; 6.7 The explanation to the above provisions provides the definition of incorrect claim mean a claim on the basis of an entry in the return or of an item which is inconsistent with another entry or in respect of which the information required to be furnished under this Act to substantiate such entry has not been furnished or in respect of deduction, where such deduction exceeds specified statutory limit. 6.8 The assessee has admittedly filed the return of income for assessment year under appeal showing total net income at ₹ 3,41,73,652/- and in the computation of income also same income has been mentioned. The assessee in Column no.24 of computation of total income (Part-B) did not claim any deduction on account of exempt income. Such computation of income is verified by the assessee by appending signature to such statement. The A.O. processed this return of income under Section 143(1) of the Act accepting the return of total income at ₹ 3,41,73,652/-. As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the I.T. Act that the taxable income of the assessee should be revised and the A.O. should hold that the entire income of the assessee to be exempt, however, the A.O. has no such power to make the claim of the assessee acceptable by making a long drawn process of reasoning. Since assessee did not make any claim of deduction on account of exempt income in the return of income which was also verified to be correct income and the deduction of exempt income is claimed in the application under Section 154 of the Act, therefore, it is not a duty of the A.O. to probe the facts of the case of the assessee while processing the return of income under Section 143(1). Since no claim of deduction of exempt income has been made in the return of income and A.O. accepted the return of income filed by assessee as it is, therefore, there was no mistake apparent on record of the Revenue Department. Thus, the rectification application under Section 154 was not maintainable in the present case. It appears to be a mistake committed by the assessee while filing the return of income in such case the assessee has been provided remedy to file the revised return, but the assessee did not take any such step ..... X X X X Extracts X X X X X X X X Extracts X X X X
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