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TMI Blog2023 (2) TMI 799X X X X Extracts X X X X X X X X Extracts X X X X ..... In the return of income, the assessee has reduced the sale consideration from profit /loss account and offered the same under the head long term capital gains. CPC however has adjusted and reduced only a figure of Rs 2,06,559/- which has resulted in higher income by Rs 17,83,441/-under the head profit/loss from business/profession . It is an admitted fact that the assessee has offered the long term capital on sale of the plot of land and which has been considered along with long term capital loss of Rs 23,31,449-/ and after setting off, long term capital loss has been allowed by CPC to the extent of Rs 17,51,746/-. In light of aforesaid, it is clearly a mistake apparent from record and the same is hereby directed to be deleted. Appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t a mistake apparent from record. 2. Briefly the facts of the case are that the assessee, an individual, filed his return of income declaring income of Rs. 38,01,750/-. Thereafter the return of income so filed by the assessee was processed and intimation dt. 06/04/2021 was issued by CPC, Bengaluru wherein the income was computed at Rs. 55,85,190/- as against declared income of Rs. 38,01,750/- by making an adjustment of Rs. 17,83,441/- under the head Profit Loss from the Business and Profession . The assessee subsequently filed a rectification application under section 154 of the Act dt. 05/05/2021 which was rejected by CPC, Bengaluru by order dt. 29/09/2021. 3. Being aggrieved, the assessee carried the matter in appeal before the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt enclosed at Page 16 of the Paperbook. Thus, the same was required to be reduced from business income while computing overall taxable income and was duly accounted for under the head capital gains separately as submitted above. 5.2 It was submitted that as regards sales consideration on sale of securities of Rs. 2,06,559/-, effect of which stands taken into consideration by Centralized Processing Centre, Bengaluru, while processing return of income was not credited to the Income and Expenditure Account and directly offered to tax under the schedule capital gain as is evident from row 3(1 )(a) of Schedule CG at page 7 of paper book. Since the amount as reduced from business income has been rightly added under the head capital gains, no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (1) is rectifiable in accordance with Section 154( l)(b) of the Act which is reproduced as under: - Rectification of mistake. 154. ( I ) With a view to rectifying any mistake apparent from the record an income- tax authority referred to in section 116 may,- (a) amend any order passed by it under the provisions of this Act; (b) amend any intimation or deemed intimation under sub-section ( 1 ) of section 143; (c) amend any intimation under sub-section ( I ) o f section 200A; (d) amend any intimation under sub-section ( J J o f section 206CB. ( 1 A) Where any matter has been considered and decided in any proceeding by way of appeal or revision relating to an order referred to in sub-section (1), the authori ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red under the head Capital Gains. In this regard, it was submitted that in the case of Shri Sanjeev Garg, Long Term Capital Loss u/s 112A of Rs. 23,31,449/- has been claimed to be set off against the Long Term Capital Gain of Rs. 5,79,703/- from sale of immovable property. Such set-off of losses has not been done in the case of Shri Rajiv Garg. Therefore, in the interest of justice, the Bench may kindly direct the Assessee to produce documentary evidence in support of the claim of Long Term Capital Loss u/s 112A of Rs. 23,31,449/-. Further, he relied on the order of the lower authorities. 7. In rejoinder, the ld AR submitted that the aforesaid issue is not in dispute before the Bench and no such prima facie adjustment has been carried ou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is an acknowledgment by CPC that the assessee has carried out said adjustment to the profit/loss account to the tune of Rs 19,90,000/-, however, while processing the return of income, adjustment has been reflected by CPC to an extent of Rs 5,79,703/- which has resulted in differential of Rs 14,10,297/- which has been retained as part of the profit/loss account and consequent net adjustment of Rs 14,10,297/-. At the same time, there is an acknowledgement by CPC that the assessee has offered net long term capital gains of Rs 5,79,703/-. I therefore find that it is clearly a case where the sale consideration of Rs 19,90,000/- as credited in the profit/loss account has been reduced while computing the income under the head Profit/gains of bus ..... X X X X Extracts X X X X X X X X Extracts X X X X
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