TaxTMI 
TaxTMI 
2024 (8) TMI 927
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.... has raised following grounds:- "1. Whether on the facts and circumstances of the case, the learned Commissioner of Income Tax Appeals (NFAC) Delhi was justified in affirming addition of Rs. 1,15,69,581/- made by the CPC u/s 154 of the Income Tax Act, 1961. 2. The Appellant craves leave to add or alter any other ground that may be taken at the time of hearing." 3. The Assessee is engaged in the activities of farming of mushrooms. The income from the said activity is in the nature of agricultural income and hence it is exempt from taxation. During the year under consideration, the assessee has earned an agricultural income of Rs. 1,15,69,581, and the same was claimed as exempt. The resultant income (i.e.) Rs. 1,15,69,580....
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....: Page No. 3 3. In schedule El we have not entered any value due to inadvertent error in part of clerk in filling of return of income. EXTRACT OF SCHEDULE BP RETURN FILLED: Page No. 4 UP EXTRACT OF FORM WHERE VALUE WAS TO BE ENTERED BUT NOT FILLED DUE TO INADVERTENT ERROR: Page No. 4 DOWN 4. Please refer to our previous replied for some details of o Four agriculture activity. Thus it is a humble request to reconsider the return furnished as it was an inadvertent error of clerk made while submitting the income tax return for AY 2018-19. I have enclosed the screenshots of errors made." 3. In view of the above I have to conclude that while processing a return u/s 143(1), CPC cannot compensa....
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.... a return has been made under section 139, or in response to a notice under sub-section (1) of section 142, such return shall be processed in the following manner, namely:- (a) the total income or loss shall be computed after making the following adjustments, namely:- (i) any arithmetical error in the return; ii) an incorrect claim, if such incorrect claim is apparent from any information in the return; (iii) disallowance of loss claimed, if return of the previous year for which set off of loss is claimed was furnished beyond the due date specified under sub-section (1) of section 139; (iv) disallowance of expenditure ^97[or increase in income] indicated in the audit report but not taken into acc....
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....any relief allowable under an agreement under section 90 or section 90A, or any relief allowable under section 91, any rebate allowable under Part A of Chapter VIII, any tax paid on self-assessment and any amount paid otherwise by way of tax, interest or fee; (d) an intimation shall be prepared or generated and sent to the assessee specifying the sum determined to be payable by, or the amount of refund due to, the assessee under clause (c); and (e) the amount of refund due to the assessee in pursuance of the determination under clause (c) shall be granted to the assessee: Provided that an intimation shall also be sent to the assessee in a case where the loss declared in the return by the assessee is adjusted but n....
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....aimed as agricultural income for Rs. 1,15,69,580, was not reported as exempt income in Schedule-E1. Hence, the CPC was justified in making the adjustment, because the claim was inconsistent with item in the return of income. Rectification under section 154 of the Act is not obligatory on the part of the Assessing Officer if clear data is not available and in this regard we rely on the judgment of the Hon'ble Supreme Court passed in Anchor Processing Pvt. Ltd. v/s CIT, [1986] 161 ITR 159 (SC). The assessee failed to submit revised return of income under section 139(5) of the Act to take care of the omission in the original return of income. This is an appeal against order passed by the Assessing Officer under section 154 of the Act. The scop....