TaxTMI 
TaxTMI 
2023 (8) TMI 1112
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....022 shall be excluded for computation of limitation and all assessee's would have limitation period of 90 days from 01.03.2022 i.e. up to 29.05.2022. The Appellant submit that it has filed appeal on 26.02.2022 (against order 19.02.2020 whose original limitation period was 21.03.2020) which is within the extended period of limitation i.e. 29.05.2022 and hence appeal shall be treated as filed within limitation period. 2. The CIT(A) erred in confirming the action of AO in rejecting the application for rectification u/s 154 of the I.T. Act filed against the intimation order passed u/s 143(1) of the I.T. Act and assessing the income at Rs. 48,78,460/- as against income of Rs. 35,41,368/- declared by the Appellant in its return. 3. The CIT(A) erred in confirming the action of AO in rejecting the rectification application u/s 154 of the IT Act on the ground that there is no mistake apparent from record. The Appellant submits that, income under the head Income From Business or Profession of Rs. 13,37,089/- declared by the Appellant is considered twice i.e. 26,74,178/by the AO in the assessed income, which constitutes a mistake apparent from record rectifiable....
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....t the speculative income of Rs. 13,37,089/- has been filled in the return of income in two different places which while processing the return considered twice as income of the assessee, one under the head 'income from business and profession' and other under the head 'speculative income'. The assessee filed appeal before the CIT(A) and CIT(A) also upheld the order of the AO. Aggrieved from the above order, the assessee filed appeal before the ITAT. 4. The ld.AR submitted that the assessee while filing Income-tax return, speculative income has been entered at two different columns and while processing the return this has been considered twice by the CPC and assessee filed rectification applications many times within the time allowed as per sec. 154 of the Act. These rectification u/s 154 have not been considered by the CPC. Before the jurisdictional AO a rectification application dated 22.12.2015 was filed on 13.01.2016 u/s 154 of the Act and further a rectification application dated 30.09.2019 was filed on 03.10.2019 which has been wrongly dismissed by the AO by observing that it is beyond the time limit and the application can not be considered us 154. The assessee was compelle....
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....ng business income of Rs. 13,37,089/- 3.5. However, during the processing of return of income u/s 143(1) of the Act by CPC, the above taxable income is considered twice resulting in double addition of same income. Relevant extract of the CPC Intimation dated 29th April 2014 is given below: 3.6. In order to rectify the above mentioned mistake apparent on record, the Appellant has been filing rectification application u/s 154 of the Act. Brief of Assessing Officer's Order dated 191'' February 2020 and Appellant's submission - With respect to issue of whether it is a mistake apparent on record 5. 1. The learned Assessing Officer rejected application filed by the Appellant by mentioning that the rectification sought by the Appellant is not a mistake apparent on record which can be rectified u/s 154 of the Act. The relevant extract from the Order of the Assessing Officer is given below: In the Return of Income riled, You have admitted business income of Rs. 13,37.089/. under the Column No Account Case and you have also admitted speculation business income of Ps. 13,37,089/, Now you have made claim that Same i....
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....refore, the responsibility for claiming refunds and reliefs rests with assessees on whom it is imposed by law, officers should :--- (a) draw their attention to any refunds or reliefs to which they appear to be clearly entitled but which they have omitted to claim for some reason or other: (b) freely advise them when approached by them as to their rights and liabilities and as to the procedure to be adopted for claiming refunds and reliefs. 5.7. Hon'ble Kolkata ITAT has in its judgement of Madhabi Nag v/s ACIT has placed reliance on The CBDT Circular No.14 of 1955 dated 11.04.1955 and has taken a view that the officers of the department must not take advantage of ignorance of the assessee about his rights and it is their duty to assist the tax payer in every reasonable way particularly in the matter of claiming and securing reliefs. Brief facts of the case were that the assessee for the A.Y.2005-06 had filed the return of income declaring Long Term Capital Gain on sale of shares of Rs. 12,32,025/-. The AO issued an intimation u/s 143(1) of the Income Tax Act, 1961 (Act) dated 03.02.2010 accepting the income returned by the assessee. The assessee filed ....
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....ication within 4 years allowed u/s 154 6. 1. The learned Assessing Officer has also mentioned that the application for rectification was not made within 4 years as the return was processed on 29^th April 2014. The relevant extract from the Order is given below: Further the petition seeking rectification u/s 154 to be filed within 4 years from the (late of return processed u/8 143(1). In this case, . the return was processed on 29/04/12014 and the rectification application has also not filed within the time limit. 6.2. With respect to above averments of the learned Assessing Officer, we wish to mention that the learned AO has incorrectly considered the last application filed before him (dated 3rd October 2019) in deciding the time limit of 4 years. The chronology of several rectification applications filed before the CPC and Assessing officer is mentioned in point 4 above. Perusing the table given under point 4 (SUPRA), your Honours' will appreciate that: * the rectification application against the CPC Intimation no. CPC/1314/U4/1422241182 dated 27th November 2014 was filed by the Appellant on 28th February 2015 (refer Annexure 8 of Paperbook ....
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....ubmission that the Appeal filed before the Hon'ble ITAT be allowed. 8. National Faceless Appeal Centre, although decided the appeal on merits, erred by observing that the Appeal filed by the Appellant is barred by limitation. 8.1. The Appellant had preferred Appeal before National Faceless Appeal Centre after getting the Order dated 19th February 2020 from the Assessing Officer. 8.2. The original limitation period for filing appeal before the NFAC was 21^st March 2020. 8.3. However, as per Hon'ble Supreme Court's order in Miscellaneous Application No.21 of 2022 ft Others, the period between 15.03.2020 till 28.02.2022 shall be excluded for computation of limitation and all assessee's would have limitation period of 90 days from 01.03.2022 i.e. up to 29.05.2022. 8.4. The Appellant has filed the Appeal before NFAC on 26th February 2022 which is well within the extended period of limitation i.e. 29^th May 2022. Accordingly, it is prayed that the same shall be treated as filed within the limitation period. It is appealed that these submissions be accepted by the Hon'ble Tribunal and justice be dispensed." 5. In....
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....observing that the rectification application filed by the assessee is time barred, this view is also not correct. The assessee filed rectification applications first, second and third time within the time. The Hon'ble Supreme Court interpreted the word 'order' sought to be amended used in Sec. 154(7) as relied by the ld.AR in his return submission at para No.7.4. Therefore, considering the judgment of Hon'ble Apex Court in the case of Hindwire Industries (cited supra), the assessee filed rectification application within the time, to which the AO ought to have considered. In view of this, I hold that the rectification application field by the assessee is well in time and it is a mistake apparent on record which should have been rectified by the Revenue Officer on the request made by the assessee. In view of this, the appeal of the assessee is allowed and the AO is directed to compute the correct income as per law. 9. In the result, the appeal of the assessee is allowed. Order pronounced in the open court on 22nd August, 2023. ============= Document 1 NO ACCOUNT CASE 51 In a case where regular books of accenat of business or profession are not maintained, furnish ....