2021 (8) TMI 1091 - AT - Income Tax

Rectification of mistake u/s 154 - total income of the assessee as considered by the Assessing Officer different from total income determined in the assessment order- HELD THAT - As from Ground raised by the assessee company total income of the assessee for the year under consideration was determined by the Assessing Officer vide an order passed u/s 144 of the Act at ₹ 15,62,97,564/-. However, while computing the tax payable by the assessee in the Income tax computation form attached with the assessment order, the total income of the assessee was wrongly considered by the AO at ₹ 6,00,76,720/- as against the total income of the ₹ 15,62,97,564/- determined in the assessment order. There was thus a clear mistake committed by the AO and since the same was apparent from record, we find merit in the contention of the ld. D/R that it was rightly rectified by the AO vide an order passed u/s 154 of the Act. - no infirmity in the order of the ld. CIT(A) upholding the order of the Assessing Officer u/s 154 of the Act and upholding the same - Appeal of the assessee is dismissed.

Summary

Issues:
Rectification order passed under section 154 of the Income Tax Act, 1961.

Analysis:
The appeal was filed by the assessee against the order of the Learned Commissioner of Income Tax (Appeals) - 17, Kolkata, which upheld the order passed by the Assessing Officer under section 154 of the Income Tax Act, 1961. The assessee, a company, filed its return of income for the relevant year declaring a loss. During the year, the company raised share capital and share application money. The Assessing Officer determined the total income of the company after making additions related to share capital, share premium, and share application money. However, in the Income tax computation form, a mistake was identified where the total income was wrongly considered lower than the actual amount determined. Consequently, a rectification order was passed by the Assessing Officer to correct the error and determine the tax payable based on the actual total income.

Upon appeal, the Learned Commissioner of Income Tax (Appeals) upheld the rectification order, stating that the assessed income was wrongly taken lower than the actual amount determined in the assessment order. The rectification under section 154 was deemed appropriate to correct this mistake. Subsequently, the assessee appealed to the Tribunal against the order of the Learned Commissioner of Income Tax (Appeals).

During the Tribunal hearing, no one appeared on behalf of the assessee. The Tribunal considered the arguments of the Departmental Representative (D/R) and reviewed the relevant material on record. It was noted that the total income of the assessee was determined correctly by the Assessing Officer, but an error occurred in computing the tax payable due to the wrong consideration of total income in the Income tax computation form. The Tribunal found merit in the contention that the mistake was apparent from the record and was rightly rectified by the Assessing Officer under section 154 of the Act. Consequently, the Tribunal upheld the order of the Learned Commissioner of Income Tax (Appeals) and dismissed the appeal filed by the assessee.

In conclusion, the Tribunal dismissed the appeal of the assessee, affirming the rectification order passed under section 154 of the Income Tax Act, 1961.