TMI Blog2011 (1) TMI 1403X X X X Extracts X X X X X X X X Extracts X X X X ..... red with the Software Technology Parks of India ( STPI ) of the Government of India. 2.1 The income of the assessee for the year in appeal under the normal provisions of the Act is ₹ 29,131 (after considering deduction under s. 10A of ₹ 9,82,99,186) and book profit under MAT is ₹ 6,67,69,517. The assessee was liable to pay tax under provisions of s. 115JB to the tune of ₹ 76,87,869 and the same was discharged by way of TDS and advance tax payments. 2.2 However, while filing the return of income, though the tax liability was computed correctly, the assessee has erroneously taken and entered an amount of ₹ 9,82,47,301 under income from business or profession instead of nil (refer : Serial No. 37 of the BP ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... O rejecting the rectification petition under s. 154 while observing as follows : I have gone through the facts of the case and the submissions of the appellant. So far as the case of the present appellant is concerned, it is seen that even though the appellant had mentioned deduction under s. 10A at ₹ 9,82,99,186 in serial No. 35 of the ITR 6 and the net profit or loss from business or profession at serial No. 36 was shown at '0', in the column No. 37 the appellant itself had shown the net profit at ₹ 9,82,47,301. Accordingly, the same was adopted by the AO while processing the return. Even if it is contended that the net profit had been erroneously taken at the said figure by the appellant, it cannot be said that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 154. Sec. 143(1) for the year under appeal reads as follows : 143.(1) Where a return has been made under s. 139, or in response to a notice under sub-s. (1) of s. 142, such return shall be processed in the following manner, namely- (a) the total income or loss shall be computed after making the following 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 cl. (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, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respect of a deduction, where such deduction exceeds specified statutory limit which may have been expressed as monetary amount or percentage or ratio or fraction; (b) the acknowledgement of the return shall be deemed to be the intimation in a case where no sum is payable by, or refundable to, the assessee under cl. (c), and where no adjustment has been made under cl. (a). 10. We observe that s. 143(1)(a) allows prima facie adjustments in the nature of arithmetical errors in the return [s. 143(1)(a)(i)]; clearly in the assessee's case the entering of wrong numerical value resulted in an arithmetic error in as much as the income of the assessee was caused to be wrongly computed and hence such an error can indeed be rectified. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... riented company exporting software and has claimed deduction under s. 10A. The assessee filed e-return for the asst. yr. 2008-09 on 27th Sept., 2008. A copy of the e-return filed has been furnished. The e- return contains hundreds of entries covering various items of income and expenditure. In the return, the assessee is required to make manual entries against most of the items while the computer fills certain entries automatically picking up the figures from the other entries made manually. The assessee had filled various entries on income, expenditure as well deduction under s. 10A. The assessee arrived at income from business at ₹ 9,82,99,186 and has computed relief under s. 10A (under Sch. XA in the return) as ₹ 9,82,99,186. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee will constitute the return of income. The Department cannot take only one entry from the return and shut their eyes to the rest of the document. No doubt, corrections which are debatable in nature cannot be carried out in an intimation under s. 143(1)(a). That does not preclude or bar the Department from correcting glaring mistakes which is apparent from the return of income. The section itself permits adjustments for any arithmetical error and incorrect claim. It would equally apply for any patent mistakes which can be found from the return. We feel the mistake is an arithmetical one when entry 36 was carried down to Entry 37 of Sch BP. This mistake is apparent and does not require detailed investigation or application of any legal p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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