9911796707
TMI Blog2016 (1) TMI 1114X X X X Extracts X X X X X X X X Extracts X X X X ..... der section 154 2. That on the facts and in the circumstances of the case, the learned CIT(A) ought to have upheld the border of the Assessing Officer 3. Briefly stated, the relevant material facts are like this. In the assessment order dated 26th July 2010, passed by the Assessing Officer under section 143(3) of the Income Tax Act, 1961, the Assessing Officer computed assessed income of the assessee as follows: 5. With the above remarks (which are not relevant in the context of this appeal), assessee's total income is computed as follows: Net profit as per P&L account 1,97,33,895 Add: 1,02,32, 290 Income Tax 32,40,466 Depreciation as per books 41,640 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... returned by the assessee itself, vide its return of income for the assessment year 2008-09. The computation forming part of the assessment order is also found to be identical to the computation of income for the AY 2008-09 as filed by the assessee during the assessment proceedings." 5. Aggrieved, assessee carried the matter in appeal before the CIT(A) who reversed the action of the Assessing Officer. While doing so, learned CIT(A) observed, inter alia, as follows: "In my considered opinion, the AO has completely erred by not rectifying such mistakes which were clearly apparent very well from records in appellant's case. The mistakes were so glaring that the AO was not even required to look or verify any other document. If such kind of typo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gures of the profit and depreciation as per profit and loss account on record. He vehemently supports and justifies the stand of the Assessing Officer. He submits that the CIT(A) committed a grave error in granting the impugned relief. 8. We are appalled by the arguments of the learned Departmental Representatives, even as we understand the compulsions of unenviable task, that they have, in pursing this appeal. Here is a case in which the figures set out in the assessment order are admittedly incorrect. What is stated to the profit as per profit and loss account is not the profit as per the profit and loss account. It is profit as stated to be, in the computation of income by the assessee- though wrongly, the profit as per profit and loss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to the error of the assessee does not obliterate the fact of mistake or legal remedies for a mistake having crept in. It is only elementary that the income liable to be taxed has to be worked out in accordance with the law as in force. In this process, it is not open to the Revenue authorities to take advantage of mistakes committed by the assessee. Tax cannot be levied on an assessee at a higher amount or at a higher rate merely because the assessee, under a mistaken belief or due to an error, offered the income for taxation at that amount or that rate. It can only be levied when it is authorised by the law, as is the mandate of Art. 265 of the Constitution of India. A sense of fairplay by the field officers towards the taxpayers is not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payer's confidence and trust. That must not be allowed to happen. An action or inaction which erodes any taxpayer's faith in Indian tax and judicial system does not do any of us any good. The well meaning advice given by the CBDT must be implemented to the fullest extent. As to what is binding nature of this advice, we may only refer to s. 119 of the Act and Hon'ble Supreme Court's judgment in the case of UCO Bank vs. CIT [(1999) 237 ITR 889 (SC)]. Hon'ble Supreme Court has time and again held that the circulars of the CBDT are legally binding on the Revenue and that this binding character attaches to the circular even if they be found not in accordance with the correct interpretation of section or they depart or deviate from such construct ..... X X X X Extracts X X X X X X X X Extracts X X X X
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