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TMI Blog2023 (5) TMI 787X X X X Extracts X X X X X X X X Extracts X X X X ..... f exemption was sought merely on the basis of the Form No. 16. But we are of the opinion that if the assessee is otherwise eligible for exemption under the provisions of the Act, she should not be deprived merely for the reason that she failed to report the claim properly in the form prescribed for filing return of income. Assessee submitted that the assessee is willing to produce all the documents in support of exemption claimed, if matter is restored back to the AO. We feel it appropriate to restore this issue back to the file of the AO with the direction to the assessee to produce all necessary evidence in support of its claim of exemption of the allowances. AO is directed to examine the said claim and allow in accordance with law after due verification and enquiry if so required - ITA No. 387/MUM/2023 - - - Dated:- 11-5-2023 - Shri Om Prakash Kant (Accountant Member) And Ms. Kavitha Rajagopal (Judicial Member) For the Assessee : Ms. Chandni Shah And Kinjal Patel For the Revenue : Mr. A.N. Bhalekar, DR ORDER PER OM PRAKASH KANT, AM This appeal by the assessee is directed against order dated 14.12.2022 passed by the Ld. Commissioner of Income-t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Appellant has not been provided with any opportunity of being heard. The Appellant prays that the rectification order is declared as void ab initio as it is passed without providing any opportunity of being heard to the Appellant. 8. On the facts and in the circumstances of the case and in law, the NFAC erred in not treating the rectification order bad in law to that extent the income of the Appellant and the tax and the interest thereon have been computed erroneously based on erroneous conclusions and assertions of facts. The Appellant prays that rectification order is declared as bad in law. 2. In the grounds raised, the assessee is mainly aggrieved with the rejection of claim of rectification of the assessee and upholding the disallowance of Rs.35,26,484/- i.e. which was claimed by the assessee as various allowances exempted under the provisions of the Act. 3. Briefly stated, the assessee a salaried individual , filed her return of income on 01.08.2017 declaring total income of Rs.1,00,13,220/- out of which salary income offered to tax was of Rs.99,53,508/-. The return of income filed by the assessee was processed by the CPC vide order dated 27.03.2019, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6.2 On the other hand, the appellant has declared gross income from salary at Rs.99,93,508/- in the return of income. For the sake of convenience, relevant disclosure in the ITR is reproduced below. Part-B TI (Computation of total Income) 1. Salaries (6 of Schedule 5) 9993508 Further, it also pertinent to mention here that the appellant did not claim any exemption u/s 10 of the Act in the return of income. Relevant gist from the ITR is reproduced below: Schedule S : Details of Income from salary 1. Name of Empoyer Avezo Advisors Pvt. Ltd. PAN of Employer (optional) Address of Employer 11th Fl. Nehru Centre Town/City Mumbai State Maharashtra Pincode 400018 1. Salary (Excluding all exempt/no-exempt allowances, perquisites profit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me appearing in Form 16 or Form 26AS which has not been included in computing the total income of the appellant in the return of income. Accordingly, the adjustment under sub-clause (vi) of section 143(1)(a) should not be applicable. In view of the above referred abstracts of IT, Form 26AS and relevant Schedule S, the averments of the appellant is not correct. On the other hand, while processing the IT, CPC found that income from salary of the appellant has been reported at Rs. 1,35,19,992/- in form26AS as against Rs.99,93,508/- declared in the IT. The CPC, while processing the IT, has thus, computed income from salary at Rs. 1,35, 19,992 - instead of Rs.99,93.508/- declared in the ITR. This action of CPC is in conformity with the provisions of section 143(1)(a)(vi) of the 6.4 It is also a matter of fact that the provisions of section 143(1)(a)(vi) of the Act empowers the CPC for adjustment of income in view of form 26AS, Form 16 and Form 16A of the Act. The appellant emphasised that the said section 143(1)(a)(vi) has been amended by a proviso below it, whereby such powers granted to CP regarding enhancement have been curtailed. In this connection, it is very im ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment for income appearing in Form 26AS. 6.6 Considering all the facts of the case and pre-amended provisions of section 143(1)(a)(vi) of the Act, there isn't any mistake which is apparent from record. The upward adjustment made by the appellant is, thus, upheld. Accordingly, all the grounds at Sr. No. 1 to 5 of appeal related to section 154 and upward adjustment of income are hereby dismissed. 4. Before us, the Ld. Counsel of the assessee filed a Paper Book containing pages 1 to 156. 5. We have heard rival submission of the parties on the issue-in-dispute and perused the relevant material on record. The issue in dispute in the case is whether there was any mistake apparent from the record in the order passed u/s 143(1) of the Act. The assessee has claimed to have received gross salary of Rs.1,35,19,992/-. According to the assessee this gross salary included allowance in the nature of house rent allowance, leave travel concession etc. amounting to Rs.35,26,484/-, which are exempted subject to provisions of section 10 of the Act. But we find that in the relevant column for the income from salary in the return of income, the assessee only declared salary income of Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. Total Income chargeable 9993508 5.1 The assessee did not revise its return of income and after processing of the return of income, filed rectification application dated 27.06.2019 wherein the assessee filed the details of the income from the salary in Schedule V. The relevant part of said rectification request is reproduced as under: Schedule S : Details of Income from salary 1. Name of Empoyer Avezo Advisors Pvt. Ltd. PAN of Employer (optional) Address of Employer 11th Fl. Nehru Centre Town/City Mumbai State Maharashtra Pincode 400018 1. Salary (Excluding all exempt/no-exempt allowances, perquisites profit in lieu of salary as they are shown separately below) 9993508 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l it can be said that assessee did not make any claim for exempted allowance of Rs.35,26,484/- in the return of income. In our opinion, omission was on the part of the assessee and therefore, there is no mistake in the order passed u/s 143(1) by the CPC. Accordingly, we uphold the finding of the Ld. CIT(A) of rejecting the claim of rectification of order u/s 143(1)(a) of the Act. 5.3 However, before us an alternative plea was raised. It was submitted that the ld CIT(A) has rejected the claim of allowing relevant exemption on merit., We find that the assessee made a fresh claim before the Ld. CIT(A) which was rejected by the Ld. CIT(A) on the ground that no relevant documents in support of exemption was filed during the first appellate proceedings before him and said claim of exemption was sought merely on the basis of the Form No. 16. But we are of the opinion that if the assessee is otherwise eligible for exemption under the provisions of the Act, she should not be deprived merely for the reason that she failed to report the claim properly in the form prescribed for filing return of income. The Ld. counsel of the assessee submitted that the assessee is willing to produce all th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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