Wrongly returning exempt income and claiming Section 89(1) relief whether a rectification permissible under Section 154

Facts:

Assessee a school teacher retired and received retirement benefits which was exempt under tax. Instead of claiming these as exempt income erroneously returned these as salary income but claimed relief under Section 89(1). Assessment was made under Section 143(1) by refusing the wrong relief under Section 89(1). Assessee sought rectification of this order with AO and CIT(A) under Section 154 citing wrong declaration of Section 89(1) as mistake apparent on record. This was refused by both authorities. On higher appeal -

Held in favour of the assessee - the wrong returning itself was a mistake apparent on record deserves rectification by AO.

Case: Dinumatiben Damjibhai Shilu Kaushik v. ITO 2023 TaxPub(DT) 1447 (Rkt-Trib)