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TMI Blog2013 (12) TMI 768X X X X Extracts X X X X X X X X Extracts X X X X ..... s filed the return of income on a total income of Rs. 5,27,891/-. The return reflected a refund claim for Rs. 63,84,256/-. This refund is made up of excess advance tax as well as TDS. 3. The return was processed under Section 143(1) and the intimation was communicated with demand of Rs. 76,920/-. As against the refund claimed by the assessee, the processing of return resulted in a further demand of Rs. 76,920/-. According to assessee, this was not proper. A petition for rectification under Section 154 was filed. The assessee claimed in the petition that credit must be given to a sum of Rs. 64,41,799/- comprising of advance tax payments and TDS. 4. In the order passed by the Assessing Officer on the said petition filed by the assessee unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Commissioner of Income Tax (Appeals) erred in holding that assessee's petition for rectification u/s. 154 has become infructuous as there is no necessity of amending the said intimation u/s. 143(1) with a view to rectify any mistake apparent from record. (4) The Commissioner of Income Tax (Appeals) ought to have appreciated that while processing the return u/s. 143(1), assessing officer omitted to give credit for advance tax and tax deducted at source aggregating to Rs. 64,41,799/-, hence a petition u/s. 154 was filed to give credit for the above sum and grant refund with. (5) The Commissioner of Income Tax (Appeals) ought to have appreciated that the assessing officer while passing the order u/s. 154 has withdrawn the claim of exempt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ner of Income Tax, appearing for the Revenue. 8. The provision of law contained in Section 143(1)(a) provides that the return filed shall be processed to compute the total income or loss of the assessee, after making adjustments for any arithmetical error in the return or incorrect claim, if such incorrect claim is so apparent from any information in the return. Any payment of additional tax or payment of refund or any other adjustment shall follow the computation of income in the above manner. Therefore, it is clear that what is possible to adjust is only any arithmetical mistake or any incorrect claim patent on the face of the return. In the present case, there was no question of any arithmetical error. Assessing Officer held that the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of sub-section (4) of that Section. Sub-section (4) of Section 54F provides an impression that the consideration received on sale of the property must be utilized for acquiring a new asset. Therefore, the question is whether the assessee has purchased the American property by transferring the consideration received in India in foreign exchange or the American property was acquired by her by independent funds available in United States of America. All these matters have to be discussed and sorted out. 11. Therefore, we cannot just ignore the anxiety of the Assessing Officer in the matter of exemption under Section 54F. But, the only thing is that such an enquiry is not possible on the petition filed by the assessee under Section 154. 12. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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