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TMI Blog2016 (1) TMI 1114X X X X Extracts X X X X X X X X Extracts X X X X ..... authorities to take advantage of mistakes committed by the assessee. Tax cannot be levied on an assessee at a higher amount or at a higher rate merely because the assessee, under a mistaken belief or due to an error, offered the income for taxation at that amount or that rate. It can only be levied when it is authorised by the law, as is the mandate of Art. 265 of the Constitution of India. A sense of fairplay by the field officers towards the taxpayers is not an act of benevolence by the field officers but it is call of duty in a socially accountable governance. If authority is needed even for justifying this approach to the taxpayers, one need not look beyond the circulars issued by the CBDT itself. One can understand the young Assessi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ces of the Assessing Officer are as follows: 1. The learned CIT(A) erred in law and on facts by directing the AO to rectify the mistakes under section 154 2. That on the facts and in the circumstances of the case, the learned CIT(A) ought to have upheld the border of the Assessing Officer 3. Briefly stated, the relevant material facts are like this. In the assessment order dated 26th July 2010, passed by the Assessing Officer under section 143(3) of the Income Tax Act, 1961, the Assessing Officer computed assessed income of the assessee as follows: 5 . With the above remarks (which are not relevant in the context of this appeal), assessee s total income is computed as follows : Net profit as pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... correct. In this regard, following observations of the Assessing Officer may be referred to: In this context, it is seen from the copies of audited profit and loss account for the AY 2008-09 that the net profit is ₹ 1,94,33,895. It is also seen that depreciation as reflected in the copies of the audited profit and loss account is ₹ 3,20,466 However, it is further seen that the income finally assessed by the AO is the same as returned by the assessee itself, vide its return of income for the assessment year 2008-09. The computation forming part of the assessment order is also found to be identical to the computation of income for the AY 2008-09 as filed by the assessee during the assessment proceedings. 5. Aggrieved, assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... learned Commissioner (DR), goes a step further. He submits that pointing out the correct figures of profit and depreciation amounts to a new claim by the assessee which cannot be made except through a revised return. He submits that since the claim of the assessee, as made in the income tax return, was accepted and the assessee could not have made a fresh claim, without a revised return, the Assessing Officer was justified in not adopting the figures of the profit and depreciation as per profit and loss account on record. He vehemently supports and justifies the stand of the Assessing Officer. He submits that the CIT(A) committed a grave error in granting the impugned relief. 8. We are appalled by the arguments of the learned Department ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the mistake on record on the ground that it is attributed to the assessee. The income tax proceedings are not adversarial proceedings. As to who is responsible for the mistake is not material for the purpose of proceedings under section 154; what is material is that there is a mistake- a mistake which is clear, glaring and which is incapable of two views being taken. The fact that mistake has occurred is beyond doubt. The fact that it is attributed to the error of the assessee does not obliterate the fact of mistake or legal remedies for a mistake having crept in. It is only elementary that the income liable to be taxed has to be worked out in accordance with the law as in force. In this process, it is not open to the Revenue authorities ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10. It is heartening to note that the CBDT has given such humane guidance to the field officers. The best thing that the field officers can do to enhance the respect for and trust in the Department, is to follow these valuable words of advice in letter and in spirit, but then, sometime overzealous, even if well meaning, efforts to collect the revenue end up sacrificing these humane niceties on the way, and thus derail the efforts of the CBDT to earn taxpayer s confidence and trust. That must not be allowed to happen. An action or inaction which erodes any taxpayer s faith in Indian tax and judicial system does not do any of us any good. The well meaning advice given by the CBDT must be implemented to the fullest extent. As to what is bindi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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