Appeal Dismissed: Turnover Issue Not Rectifiable under Section 154

The Appellate Tribunal ITAT Jodhpur dismissed the appeal of the assessee, ruling that the turnover computation issue was debatable and did not qualify as a mistake apparent from the record under section 154 of the Income Tax Act. The Tribunal emphasized that only mistakes that are apparent without the need for further investigation can be rectified under section 154. Consequently, the challenge raised by the assessee was deemed not maintainable.

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Issues Involved:
The appeal filed by the assessee against the order of the ld. CIT (A) National Faceless Appeal Centre (NFAC), Delhi dated 27.12.2023 challenging the decision of the ld. CIT(A) in confirming the finding of the AO u/s 154 of the Act by holding that there was no mistake apparent from the record.

Details of the Judgment:

Issue 1: Mistake Apparent from the Record
The appellant argued that the turnover computation by the AO based on cash receipts credited in the cash book was incorrect as not all cash receipts constituted business turnover, thus a mistake apparent from the record. The appellant sought rectification under section 154 to reduce the burden of the Higher Authority. However, the Tribunal held that the claim was debatable and required further verification and examination of books of account, which did not fall under the category of omission or apparent mistake from the record. The Tribunal emphasized that only mistakes that are apparent and patent from the record, without the need for further investigation, can be rectified under section 154 of the Income Tax Act. Consequently, the Tribunal dismissed the challenge raised by the assessee as not maintainable.

In conclusion, the appeal of the assessee was dismissed by the Appellate Tribunal ITAT Jodhpur, citing that the issue raised was debatable and did not qualify as a mistake apparent from the record under section 154 of the Income Tax Act.

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