TMI Blog2023 (12) TMI 648X X X X Extracts X X X X X X X X Extracts X X X X ..... mation u/s.143(1) of the Act. The Hon ble High Court further held that this power of rectification enures even after the matter has been considered and decided in any proceedings by way of appeal or revision. It was held that necessarily this power extends even at the stage of the appeal and further appeal to the ITAT. In the case of Zen Tobacco (P.) Ltd. v ACIT [ 2015 (7) TMI 729 - ITAT AHMEDABAD] assessee had filed its return of income declaring certain income and the same was processed under section 143(1). Subsequently, on verification of assessee's record, it was noticed that the provision of deferred tax assets of certain amount, which ought to have been deducted from total income, was not deducted but added back to amount of profit and, thus, taxable income was overstated. Therefore, the assessee filed an application under section 154 seeking for rectification of mistake along with the revised statement of income and claimed a refund. AO rejected the application observing that the assessee should have filed a revised return rather than taking recourse to section 154, which was not permissible under the Act. On appeal, the Commissioner (Appeals) dismissed the appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... REC Tax Free Interest 2,25,842 National Highway Authority Tax Free 17,027 NHB Tax Free Interest 1,75,821 NTPC Ltd. Tax Free Interest 11,963 Dividend on TPKAMARANJAN Port Ltd. 1,66,700 Reliance Money Fund 2,72,082 Total Comes to 17,50,637 IRDA Tax Free Interest 1,30,854 PPF Interest 1,27,973 Total Comes to 2,58,827 Sir, from above table there are all tax free interest income from Government companies except two companies which are dividend incomes. One casn also find out from attached holding statements. Your appellant craves, leave to add or alter or modify the above grounds of appeal on or before the date of final hearing. 3. The brief facts of the case are that for the impugned year under consideration, the assessee filed return of inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y require an examination or argument to establish them i.e. whether it is Interest Income as now claimed or Dividend Income as earlier claimed. Further, it has to be verified whether such Interest Income earned is Exempt or not. These claims have to be established by long drawn process of reasoning on points where there may be conceivably two opinions. In view of these facts the action of AO in rejecting the application u/s 154 of the Act is upheld. Grounds of Appeal Nos. 1 to 2 are dismissed. 5. The assessee is in appeal before us against the aforesaid order passed by Ld. CIT(A) rejecting the contention of the assessee. 6. Before us, the assessee submitted that from the facts placed on record, it is evident that the assessee had earned interest income from Government Companies, which is exempt under Section 10 of the Act. However, inadvertently, in the return of income, the assessee had stated that the aforesaid income was dividend income (as against interest income) and claimed that such dividend income was exempt from tax. However, this was an inadvertent mistake made by the assessee by incorrectly mentioning dividend income instead of interest income, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a refund. The Assessing Officer rejected the application observing that the assessee should have filed a revised return rather than taking recourse to section 154, which was not permissible under the Act. On appeal, the Commissioner (Appeals) dismissed the appeal. On second appeal, the Ahmedabad ITAT held that from the provisions of sections 139(1), 139(5) and 143(1) it is evident that it is not the case that revenue authorities have to accept whatever has been stated in the return and compute the taxable income mechanically. As per provisions of section 143(1), the concerned revenue authority has to examine whether any claim as made by the assessee is correct or not. This includes understatement and overstatement of the income. If the revenue authority failed to take note of any incorrect claim with regard to total income of the assessee, such failure would necessarily mean mistake apparent from the record. In the case of Shri Chetanbhai Ramjibhai Avaiya vs. ITO (ITA No. 364/Srt/2017 A.Y. 2014-15 dated 15.07.2022) the ITAT has held as under:- 8. We have considered the rival submission of both the parties. We find that there is no dispute on the facts of the present case th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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