Assessee filed return showing loss and assessment was completed. Assessee, however detected that TDS rebate had not been considered and hence filed an amended return. While doing so assessee erred in by showing figure of loss as profit. AO assessed accordingly and issued demand notice instead of refund.
AO's view is that under section 154 only mistakes on record ie one committed by department only can be rectified.
What is the correct interpretation of law and whether any supreme court decisions are available in support.
Taxpayer's Error in Amended Return Leads to Demand Notice; Appeal Suggested for Rectification Under Section 154. An assessee filed a tax return showing a loss, but later discovered that a TDS rebate was not considered. Upon filing an amended return, the assessee mistakenly reported the loss as a profit. The Assessing Officer (AO) issued a demand notice based on this error, arguing that under Section 154, only departmental mistakes can be rectified. The query seeks clarification on the correct legal interpretation and relevant Supreme Court decisions. The response suggests filing an appeal with the Appellate Authority, which may accept new evidence not presented to the Assessing Authority. (AI Summary)
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