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TMI Blog2017 (5) TMI 158X X X X Extracts X X X X X X X X Extracts X X X X ..... ht to the notice of the revenue authorities, there was no justification to levy any taxes. Claim made by the assessee before the FAA should have been allowed after verification. Therefore, in the interest of Justice, we are restoring that the issue to the file of the FAA, who would verify the veracity of the claim made by the assessee. If it is found that claim made by the assessee about brought forward losses and the depreciation was in order considering the earlier years returns of income, the appeal filed by the assessee should be allowed. The assessee is directed to extend full cooperation to the FAA. Effective ground of appeal is allowed in favour of the assessee, in part. - ITA/3701-02/Mum/2015 - - - Dated:- 5-4-2017 - Shri Raje ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hind Mills Co. Ltd. (128 ITR 486). The AO disposed off the second rectification of vacation on 18/11/2013 and rejected the claim made by the assessee. 3. Aggrieved by the Order of the AO, the Assessee Preferred an Appeal before the First Appellate Authority(FAA). Before him, the assessee raised the same arguments that are mentioned in the earlier paragraph. After considering the submission of the assessee, the FAA referred to the provisions of section 143 (1) of the Act and held that before 01/04/2008, there was no provision for correcting arithmetic mistake of internal inconsistencies, that section was amended by the Finance Act 2008, with effect from 01/04/2008, that the case of assessee was distinguishable from the decision of Prithvi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also accepted that in the competition of income the assessee has shown income at Rs nil. As per the settled principles of taxation jurisprudence the Department is entitled to collect due taxes only and that due taxes arise from taxable income. In the case under consideration the assessee had inadvertently, in the return of income, disclosed some income that had not accrued/arisen to it. In the circumstances, after-the-fact was brought to the notice of the revenue authorities, there was no justification to levy any taxes. In the case of Ahmedabad Keiser E hind Mills Co. Ltd. (supra) the Hon ble Gujarat High Court had followed circular issued by the CBDT in the year 1955 (supra). In that circular, the board had advised the officers of the Dep ..... X X X X Extracts X X X X X X X X Extracts X X X X
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