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TMI Blog2017 (9) TMI 561X X X X Extracts X X X X X X X X Extracts X X X X ..... ectification application of the assessee since the details in the balance sheet and P&L A/c filed by the assessee are not matching with the details filled in the return of income. Therefore, the mistake committed by the assessee is very much apparent on record, if the AO took little time to compare the balance sheet and return of income. It is the duty of the AO to assess the correct income of the assessee and collect the due tax. It is a settled law that revenue cannot collect any tax on any fictitious income. In the given case, assessee has by oversight filled the rental income twice in the respective column ‘income from house property’ and also in the column ‘income from other sources’ in the return of income, due to which, the income wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed for recovery of tax demand, with the prayer that there was a mistake in filling up the rental income twice in the return of income. However, AO rejected the application of the assessee for rectification of mistake u/s 154 by observing that the process was completed u/s 143(1) based on the return of income filed by the assessee and if the assessee noticed any mistake while computing the income in the return of income, the assessee ought to have filed revised return of income u/s 139(5) of the Act. The AO, therefore, concluded that under the given circumstances, it cannot be said that there is any mistake in the order u/s 143(1) of the Act. 3. Aggrieved with the above order, assessee preferred an appeal before the CIT. The assessee could ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tified in holding that the mistake apparent from record is confined to arithmetic error and not to a slip in the return made by oversight. 6. The orders of the CIT(A) & A.O are in violation of the Board Circular No. 14(XL)-35 dated 11.04.1955. 7. Learned CIT(A) and A.O have failed to realize that their orders result in unjust enrichment of revenue which is against the very principles of taxation by the Government. 8. Having rectified one mistake in not granting credit originally for TDS as per Form 26AS, the lower authorities are not justified in rejecting to rectify the other mistake. This stand is illogical, inconsistent and contradictory. 9. For these and any other grounds that may be raised at/before the date of hearing it is pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re duly audited. While filing return of income, by oversight, rental income was filled in the respective column i.e. 'income from house property' and also in the column 'income from other sources'. He submitted that this mistake was brought to the notice of the assessee only when the assessee has received 143(1) assessment order from CPC. He submitted that the assessee was in bonafide view that this mistake can be rectified by writing to CPC and accordingly the CPC was contacted and, in turn, the CPC has directed the assessee to contact AO for bonafide mistake committed by assessee. Accordingly, the assessee has filed rectification application before the AO u/s 154 along with audited financial statement and the AO has not entertained plea o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... O to rectify the mistake committed by it in the return of income. In our considered view, the AO should have entertained the rectification application of the assessee since the details in the balance sheet and P&L A/c filed by the assessee are not matching with the details filled in the return of income. Therefore, the mistake committed by the assessee is very much apparent on record, if the AO took little time to compare the balance sheet and return of income. It is the duty of the AO to assess the correct income of the assessee and collect the due tax. It is a settled law that revenue cannot collect any tax on any fictitious income. In the given case, assessee has by oversight filled the rental income twice in the respective column 'incom ..... X X X X Extracts X X X X X X X X Extracts X X X X
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