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Hasumatiben Dahyabhai Mistry Versus The ITO, Ward-9 (2) , Surat

2016 (9) TMI 1003 - ITAT AHMEDABAD

Rectification application u/s. 154 - Held that:- There is no dispute that the impugned assessment year is the first year of filing electronic return. The Central Board of Direct Taxes has also issued a circular no. 6/2008 dated 18-07-2008 advising the assessees to retain with themselves all annexures relating to computation of income, TDS/TCS certificates, challans, counterfoils relating to advance and self assessment taxes and audit report to be produced as and when called by the Assessing Offi .....

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,87,179/- and aggregate income of ₹ 1,38,790/-; respectively. Her P & L account at page 33 of the case file reveals purchase figures of ₹ 35,33,426/- resulting in net profits of ₹ 1,64,716.75/-. These figures are based on duly audited books. There is no issue before us on correctness thereof. We observe in totality of all these facts that the only option before this assessee was to file for the impugned rectification u/s. 154 of the act in view of the correct figures given in h .....

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der section 154 of the Income Tax Act, 1961; in short the Act . 2. The instant appeal raises the following substantive grounds:- 1. On the facts and circumstances of the case as well as law on the subject, the learned Commissioner of Income Tax (Appeals) has erred in confirming the action of assessing officer in rejecting assessee's application for rectification u/s 154 of the IT. Act, 1961 & thereby erred in not issuing refund of ₹ 6,647/- claimed in the return of income. 2. On th .....

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of ₹ 1,38,792/- thereby claiming refund of ₹ 6,647/-. This case file does not reveal any evidence of processing thereof u/s. 143(1) of the Act followed by any intimation. The ACIT thereafter issued a demand notice dated 16-07-2012 involving a sum of ₹ 14,37,190/-. The assessee moved the impugned section 154 rectification petition dated 10-10-2013 reading as under:- RE: ASSESSMENT YEAR 2008-09 APPLICATION FOR RECTIFICATION U/S. 154 OF THE I.T. ACT With reference to the above as .....

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refund due to me was ₹ 6647/-. Thus there is no demand outstanding. Sir, mine was the Audit case in that year. The Audit report was also obtained before the due date. But, sir while preparing the paper return of income op. computer, there is a mistake in filing the figures. The purchase figure of ₹ 35,33,426/- was printed at ₹ 3,33,426/-. Only the digit 5 (Five) is missing, all the other figures were correctly entered. Thus, there is a mistake of ₹ 32,00,000/- in purchas .....

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n of income is also correctly entered. The Tax calculation was also correct (the Tax Payable is Nil). Only the Profit and Loss Account was incorrectly filled in the return of income, due to the above mistakes. Sir, as mine was the Audit case in that year, All Purchases are vouched and verified by the Auditor. Payment of purchases were also made by Cheques. Sir, the new annexureless Returns were introduced just before the beginning of the year and this was a genuine human mistake. Kindly, rectify .....

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elf stated purchase amount in question to be ₹ 3,33,426/-. He accordingly held the impugned rectification plea to be beyond the purview of section 143(1)(a) of the Act. All this resulted in rejection of assessee s rectification. 5. The CIT(A) upholds Assessing Officer s action as follows:- 6.1.1 I have considered the rectification order as well as the submissions of the appellant. The Grounds of appeal- Ground No. 1 pertains to rejecting appellant's application for rectification u/s 15 .....

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43 has been shown at ₹ 34,87,179/-. The appellant has claimed that due to typographical error the figure of purchase of ₹ 35,33,426/- was typed as 3,33,426/- and some expenses under the head 'beam pasramni' of ₹ 29,810/-, 'warping expenses' of ₹ 57,365/- and 'yarn processing expenses' of ₹ 35,287/- was not claimed under the P&L account. The issue raised by the appellant has two dimensions- First, whether provisions of section 154, of the .....

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Act. However in the instant case, the fact is very different as the appellant himself has claimed an amount of purchase at ₹ 3,33,426/- and omission of certain claim of expenses, which is neither any arithmetical error nor an incorrect claim. It is apparent from the return of income for AY 2008-09 that the purchase has been shown of ₹ 3,33,426/-. Therefore, any adjustment regarding quantum of purchase and amount of other unclaimed expenses under various heads is beyond the purview of .....

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rred to in section 116 may, - (a) amend any order passed by it under the provisions of this Act; [(b) amend any intimation or deemed intimation under subsection (1) of section 143,]] [(1A) Where any matter91 has been considered and decided in any proceeding by way of appeal or revision relating to an order referred to in sub-section (1), the authority passing such order may, notwithstanding anything contained in any law for the time being In force, amend the order under that subsection in relati .....

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learly lays down that any mistake "apparent from the record' can be rectified. This means the mistake should be verifiable from the records. This fact has now become a settled principal it the light of the judgment of the Hon'ble Supreme Court which is reported vide 284 ITR 323 in the case of Goetze(India) Ltd., Vs Commissioner of Income tax. The Hon'ble Supreme Court in the case Volkart Brothers Case (SC) 82 ITR SO/ held that the mistake was be obvious and patent- not something .....

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is of the above facts, it is evident and clear that the issue raised regarding error in claiming expenses does not fall in the category of mistake apparent from record. The claim of the appellant that certain expenses have been omitted and the purchase has been wrongly mentioned needs deliberations and verifications from records and is not a mistake apparent from records. The mistake apparent from record includes arithmetically error, incorrect claim which is apparent from any information in the .....

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ng revised return of income as contemplated under section 139(5)? It is quite possible and natural that in submitting a return, some bona fide omission or wrong statement may have occurred. In order to obviate this possibility the. legislature has made provisions in section 139(5) enabling an assessee to furnish a revised return. Thus, the assessee has a right to file revised return if he discovers any omission or any wrong statement in the original filed return. Such a revised return can be fur .....

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n between a revised return and a correction in the originally filed return. If an assessee files an application or revised computation of income for correcting a return already filed or for making some amendments therein, it would not certainly mean that he has filed a revised return. Such a petition is not recognized under the Income-tax Act. The basis of assessment is the return filed by the assessee. If a revised return is filed under section 139(5) the assessment can be completed only on the .....

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of income is accepted, then the very purpose of enacting section 139(5) for filing revised return shall be frustrated and provision of said section becomes redundant. 6.2.3 The Assessing Officer has no power to entertain fresh claim made by the assessee after filing of the original return other than by filing of revised return. Law is well settled that when the statute requires to do certain thing in certain way, the thing must be done in that way or not at all. Other methods or mode of performa .....

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evkala Consultancy Service AIR 2004 SC 2615). Similar view has been expressed in the Orissa Rural Housing Development Corpn. Ltd, 343 ITR 316(0rissa). Hence, the ground of appeal is being dismissed. 6.3.1 In view of the above facts, it is evident that the contention by the appellant is not a mistake apparent from record and is neither patent nor obvious. The appellant had not filed any revised return of income to claim deductions as envisaged in the law. Hence, the action of the AO is upheld and .....

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rst year of filing electronic return. The Central Board of Direct Taxes has also issued a circular no. 6/2008 dated 18-07-2008 advising the assessees to retain with themselves all annexures relating to computation of income, TDS/TCS certificates, challans, counterfoils relating to advance and self assessment taxes and audit report to be produced as and when called by the Assessing Officer. We repeat that neither there is any such call or intimation of processing forthcoming from the case file. B .....

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