The Tax Publishers2020 TaxPub(DT) 5413 (Pune-Trib)

INCOME TAX ACT 1961

Section 154

Since AO carried out rectification of a glaring and patent mistake committed in the original assessment order, by no standard, it can be construed as a debatable point amenable to two views. Therefore, appeal filed by assessee against addition made through order of rectification under section 154 was dismissed.

Rectification - Mistake apparent - Glaring and patent mistake committed in original assessment -

Assessee filed appeal against addition made through order of rectification under section 154 by AO and confirmed by CIT(A) as mistake apparent from record on the ground that the net profit offered to tax by the assessee during assessment proceedings on contract receipts and net profit on sub-contracts receipts offered to tax does not include income from other sources on account of interest on fixed deposits and interest on IT refund. Held: AO in the assessment order inadvertently adopted the Business income, which had the effect of excluding Income from other sources, which was independently offered by the assessee in its return of income and was not a subject matter of any dispute. It was this mistake which the AO rectified in the current proceedings under section 154 by also including Income from other sources in the total income, which was earlier omitted to be included in the original assessment order. It is a clear-cut case of the AO carrying out rectification of a glaring and patent mistake committed in the original assessment order. By no standard, it can be construed as a debatable point amenable to two views. Therefore, appeal filed by assessee was dismissed.

REFERRED :

FAVOUR : Against the assessee

A.Y. : 2010-11



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