2026 (6) TMI 608

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....raising the following grounds of appeal: "1. That the order of the Ld. Addl/JCIT(A) confirming the erroneous order of the AO is bad in law and against the facts of the case. 2. On the facts of the case and in law, the Ld. Addl/JCIT(A) erred in dismissal of appeal for rectification of mistake while the mistake was apparent and obvious in the return filed by the appellant and the mistake on merits the AO and Ld. Addl/JCIT(A) admitted to also. 3. On the facts of the case and in law, the Ld. Addl/JCIT(A) erred in dismissing the appeal by observing that the scope of rectification is very limited to and thus can be carried out only to correct the mistake/errors that are obvious & patent from the existing record in an or....

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....of 'on or before 31.01.2018' and consequently, the LTCG was erroneously computed at Rs.24,343/- instead of the actual taxable profit of Rs.6,972/-. To correct this patent mistake, the assessee filed a rectification application u/s 154 of the Act, pointing out the error. The Ld. AO rejected the rectification application vide order dated 01.05.2024, by holding that the correction of such an error required a revision of the return, as the proposed rectification would alter the total income, which falls beyond the limited scope of section 154 of the Act. Aggrieved with the rejection of the rectification petition, the assessee filed an appeal before the Ld. Addl/JCIT(A), who observed that the rectification u/s 154 of the Act can only be ....

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....It was requested that the directions may be issued to the Ld. AO to treat the assets as acquired before 31.01.2018 and to re-compute the capital gains of. 6. We have considered the submissions made, gone through the facts of the case and perused the record and the order of the Ld. Addl/JCIT(A). As per section 154 of the Act, a mistake apparent from record can be rectified. It has been held in the case of Maharana Mills (P.) Ltd. v. ITO [1959] 36 ITR 350 (SC) that The word 'record' contemplated by section 35 of the 1922 Act does not mean only the order of assessment but it comprises all proceedings on which the assessment order is based. In Ethel Rodrigues v. ACED [1963] 49 ITR (ED) 128 (Mys.) decided under the Estate Duty Act, it....