2013 (12) TMI 768

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...., 1961. 2. The assessee in this case has filed the return of income on a total income of Rs. 5,27,891/-. The return reflected a refund claim for Rs. 63,84,256/-. This refund is made up of excess advance tax as well as TDS. 3. The return was processed under Section 143(1) and the intimation was communicated with demand of Rs. 76,920/-. As against the refund claimed by the assessee, the processing of return resulted in a further demand of Rs. 76,920/-. According to assessee, this was not proper. A petition for rectification under Section 154 was filed. The assessee claimed in the petition that credit must be given to a sum of Rs. 64,41,799/- comprising of advance tax payments and TDS. 4. In the order passed by the Assessing Officer o....

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....ication order passed by the assessing officer. (3) The Commissioner of Income Tax (Appeals) erred in holding that assessee's petition for rectification u/s. 154 has become infructuous as there is no necessity of amending the said intimation u/s. 143(1) with a view to rectify any mistake apparent from record. (4) The Commissioner of Income Tax (Appeals) ought to have appreciated that while processing the return u/s. 143(1), assessing officer omitted to give credit for advance tax and tax deducted at source aggregating to Rs. 64,41,799/-, hence a petition u/s. 154 was filed to give credit for the above sum and grant refund with. (5) The Commissioner of Income Tax (Appeals) ought to have appreciated that the assessing officer while pa....

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....ing for the assessee and Shri Guru Bhashyam, the learned Joint Commissioner of Income Tax, appearing for the Revenue. 8. The provision of law contained in Section 143(1)(a) provides that the return filed shall be processed to compute the total income or loss of the assessee, after making adjustments for any arithmetical error in the return or incorrect claim, if such incorrect claim is so apparent from any information in the return. Any payment of additional tax or payment of refund or any other adjustment shall follow the computation of income in the above manner. Therefore, it is clear that what is possible to adjust is only any arithmetical mistake or any incorrect claim patent on the face of the return. In the present case, there was....