TMI Blog2022 (7) TMI 1489X X X X Extracts X X X X X X X X Extracts X X X X ..... of law. In the case in hand, we find a peculiar situation, wherein the assessee himself offered and paid the impugned tax, however on realizing his mistake, the assessee immediately filed an application for rectification u/s 154 of seeking refund of tax paid. Therefore, considering the peculiar facts of the case and various submissions of assessee and the ratio of various decisions, we treat the rectification application filed under section 154 of assessee as additional claim of the assessee and admit the same for consideration. Our view is also strengthen by the decisions Hon'ble Supreme Court in Goetez (India) Ltd. [ 2006 (3) TMI 75 - SUPREME COURT] while discussing the scope of power of Tribunal under section 254 clarify though the assessing officer is not empower to entertain new claim without the assessee revising the return of income, however, this restriction is not impinge on the power of Tribunal under section 254. Further in the case of CIT vs Mitesh Impex [ 2014 (4) TMI 484 - GUJARAT HIGH COURT] , Pruthvi Broker Shareholders Pvt. Ltd. [ 2012 (7) TMI 158 - BOMBAY HIGH COURT ],CIT Vs Sam Global Securities Ltd. [ 2013 (9) TMI 876 - DELHI HIGH COURT] wherein i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f agricultural land. The said agricultural land is situated outside the Municipal limit having population of less than 10,000. The assessee furnished the certificate of Talati and claimed that he was not liable to pay tax on capital gains as the land / asset sold by him was an agricultural land. The application of assessee was not accepted by Assessing Officer by holding that no prima facie adjustment can be made nor any addition of income can be made by Assessing Officer during the processing of return under section 143(1) of the Act. Further, the Assessing Officer cannot go beyond the return except to computing tax or interest on adjustment of pre-paid tax. The Assessing Officer has no power to disturb the income disclosed in the return of income. Further, the assessee failed to furnish any revised return after taking into consideration all the facts of the case. And that there is no mistake apparent from the record / typographical error which required rectification. Aggrieved by the order of Assessing Officer the assessee filed appeal before Ld. CIT(A). Before Ld. CIT(A), the assessee made similar submission as made by the Assessing Officer. The Ld. CIT(A) after considering the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e refund or relief is due to him which would inspire confidence the benefit the department to inspire the general public / taxpayer. The Ld. AR for the assessee by referring the para -6 of the said Circular, he submits that intention of this circular is not that due should not be charged or that any favour should be shown to anybody in the matter of assessment / or that where investigation are called for, they should not be made. Whatever the legitimate tax, it must be assessed and must be collected. The purpose of the Circular is merely to emphasise that the officer should not take advantage of an assessee s ignorance to collect more tax than is legitimately due from him. The Ld. AR for the assessee further submits that the Circular is still having force as same has not been withdrawn and recall. The Circulars of CBDT is binding on all the officers of the department. The said Circular has been referred by various superior courts including of jurisdictional High Court in the case of Commissioner of Income-tax vs. Ahmedabad Keiser-E-Hind Mills Co. Ltd. (1981) 128 ITR486 (Guj). The Ld. AR for the assessee submits that in this case before first appellate authority (Appellate Assistant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ld. AR for the assessee submits that he has a limited prayer that the application of assessee under section 154 of the Act, for rectification of mistake may be restored to the file of Assessing Officer to adjudicate the same on merit on the fresh claim raised by assessee. The assessee may be granted liberty to prove his case as the assessee is not liable to pay tax on LTCG as the same is exempted. To support his contention, all submission, Ld. AR for the assessee relied upon the following decisions: CBDT Circular No.14(XL-35) Dated 11.04.1955 CIT vs. Ahmedabad Keiser-E-Hind Mills Co. Ltd. (1981) 128 ITR 486 (Guj) Bansal Prop build Pvt. Ltd. vs. CIT(A) ITA No.185/JP/2021 dt.12.04.2022 Florence Education Trust vs. ITO ITA No.618/Ahd/2019 dated 04.01.2022 Gujarat Gas Trading Co. Ltd. vs. CIT SCA No.2514/2011 dated 07.09.2016 (Guj) Kiritkumar Hiralal Doriwala Vs Wealth Tax Officer (2008) 26 SOT 27 (Ahd-ITAT) 107 TTJ 31 (Ahd-ITAT) CIT vs. Shelly Products (2003) 129 Taxman 271 (SC) 5. At the time of concluding his submissions, the Ld. A.R for the assessee invited our attention under section 237 which prescribed that if a person satisfies Assessing Officer th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o consideration all the facts of the case. The Ld. CIT(A) confirmed the action of Assessing Officer with the observation that the mistake is by the appellant in computation of income . 9. Now before us, the Ld. AR for the assessee vehemently relying upon the CBDT Circular No.14(XL-35) dated 11.04.1955 and submitted that though the assessee committed mistake which was realized later on, however, it was the duty of officer of the Department not to take the advantage of ignorance of as about his right. The Ld. AR for the assessee submits that the CBDT s Circular dated 11.04.1955 has not been withdrawn till now and various courts including Hon'ble jurisdictional High Court by referring the said CBDT s Circular dated 11.04.1955 held that it is the policy of Department that office should not take advantage of ignorance of the ae about his right. Besides reliance on various case laws, Ld. AR for the assessee vehemently relied on the decision of Hon'ble jurisdictional High Court in the case of Ahmedabad Keiser-E-Hind Mills Co. Ltd. (supra), wherein the Hon'ble jurisdictional High Court while referring the said CBDT s Circular dated 11.04.1955 held that is incumbent on the I ..... 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