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| The Tax Publishers2019 TaxPub(DT) 2219 (Coch-Trib) INCOME TAX ACT, 1961
Section 154
CBDT Circular No. 14(XL35) provides for making responsible assessment that Assessing Authority to have reasonable approach in completing an assessment, to grant lawful and eligible deduction to the assessee, even if it was not claimed by assessee. Since it was the duty of AO to refrain from assessing a non-taxable income returned by assessee on mistaken understanding, therefore, assessee was entitled to relief sought for in appeal.
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Rectification under section 154 - Correction of a mistake crept in computation statement of income - -
Assessee filed an appeal to first appellate authority contending that long-term capital gain computed by assessee was mistake. According to him, instead of stating the cost of acquisition as Rs. 20,00,000 by an inadvertent mistake, it mentioned as Rs. 2 lakh. According to assessee, this mistake had resulted in overstating of long-term capital gain. CIT(A), however, rejected the contention raised by assessee. Held: Assessee's plea was to adopt the correct amount of Capital Gains, the particulars of which have already been furnished to and available with Assessing Authority. CBDT Circular No. 14(XL35) provides for making responsible assessment that Assessing Authority to have reasonable approach in completing an assessment, to grant lawful and eligible deduction to the assessee, even if it was not claimed by assessee. The recent judgment in the case of Raghavan Nair v. ACIT (2018) 402 ITR 400 (Ker.) : 2018 TaxPub(DT) 0276 (Ker-HC) had held that it was the duty of AO to refrain from assessing a non-taxable income returned by assessee on mistaken understanding. Thus, assessee was entitled to relief sought for in appeal
Followed:Goetze (India) Ltd. v. CIT (2006) 284 ITR 323 (SC) : 2006 TaxPub(DT) 1528 (SC) and Raghavan Nair v. Asstt. CIT (2018) 402 ITR 400 (Ker.) : 2018 TaxPub(DT) 0276 (Ker-HC)
REFERRED :
FAVOUR : In assessee's favour
A.Y. :
IN THE ITAT, COCHIN BENCH
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