TMI Blog2013 (4) TMI 959X X X X Extracts X X X X X X X X Extracts X X X X ..... cause. Announced in the Open Court. 2. The appellant has raised the following grounds : 1. That the Ld. Commissioner of Income Tax (Appeals) has erred in law as well as on facts in holding that the revised return filed on 24.12.2007 at an income of ₹ 33, 30,939/- was not a valid return which is illegal, arbitrary unjustified. 2. That the Ld. Commissioner of Income Tax (Appeals) has erred in upholding that the return originally filed on 25.09.2007 at an income of ₹ 51,09,290/- was the only valid return and as such the income was rightly assessed at ₹ 51,09,290/- as against income returned at ₹ 33,30,939/- in the revised return which is arbitrary and unjustified. 3. That the Id. Commissioner of I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al return filed on 25.09.2007, it was explained that the assessee was not even aware as to on what basis, that return was filed by his earlier counsel. In order to justify income of ₹ 33,30,939/-, various details were filed including sources thereof, like short term capital gain, long term capital gain and interest income. It was further explained that these are the only sources of assessee's income and the assessee did not have any other taxable source of income. Through computation of income, the assessee tried to explain the possible mistakes committed, which resulted in higher income and disclosed in the original return filed on 25.09.2007. Therefore, it was submitted by ld. AR, with reference to the provisions of section 143( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rdingly, he has assessed the returned income as per return of income filed on 25.09.2007 at ₹ 51,09,290/-. 5. Aggrieved the assessee went before CIT(Appeals) who has followed suit and has treated the assessed income at ₹ 51,09,290/- as declared in the original return, which is duly signed by the assessee. 6. Now the assessee is further aggrieved. 7. We have heard rival submissions and have carefully perused the entire record. With the help of numerous decisions, ld. AR has tried to bring home to us that this is an inadvertent mistake which has to be rectified by the AO when it was brought to his notice during the course of assessment proceedings by filing revised computation of income. He has also stated that the revise ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a lower income is non-est in the eyes of the law and is only a waste piece of paper. But the question arises as to whether the revised computation of income filed during the assessment proceedings detailing the exact source(s) of income of the assessee and there is no other source of assessee's income, which has been brought on record by the AO or otherwise, can the revised computation of income not be acted upon by the AO who is duty bound to arrive at a correct income, without taking advantage of any inadvertent mistake(s) committed by the assessee or his counsel. Before we advert to the relevant precedents, on this issue, we would like to discuss the exact legal position which can be invoked and resorted to in such a complex scenari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... takes should be corrected and the correct income of the assessee only should be taxed. The provisions of section 143(3)(ii), if analyzed in its wider perspective, empowers the AO in that direction. When the assessee pays more tax than due, there-from the AO has been given power to refund, whatever has been paid by the assessee more than the due tax. This power can be utilized in those cases also where the assessee has inadvertently or by mistake of his counsel/Chartered Accountant, wrong computation of income has been made and wrong income has been disclosed for taxation. This wrong computation is, in a way, tantamounts to offering payment of more taxes than what are actually due from the assessee. If such an analogy is drawn, this case can ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... making the assessment of total income or of total loss, in case of any assessee, on the basis of such assessment is bound to consider the following points : (i) Any evidence produced by the assessee on the dates specified in the notice from time to time and such other evidence, as the AO may require the assessee to produce on specified points, and (ii) All relevant material gathered by him even deduction or exemption or relief not claimed in the return, can be claimed under scrutiny proceedings. 10. When a notice u/s 143(2) has been issued and proceedings of assessment u/s 143(3) are in progress, the assessee can putforth any claim for deduction or exemption or relief, which were not claimed in the return of income and the same sha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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