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TMI Blog2024 (5) TMI 390X X X X Extracts X X X X X X X X Extracts X X X X ..... to be looked into and same needs to be rectified after verification. Additional depreciation - We find that the assessee before the revenue authority and before us stated that in the immediate previous assessment year, it acquired plant Machinery which was eligible for additional depreciation. However, the plant machinery in previous assessment year was put to use for less than 180 days therefore the assessee claimed only 50% of such additional claim in the immediate previous year and remaining 50% claimed in the year under consideration. The claim made in previous assessment year for 50% amount has been allowed therefore remaining 50% should also be allowed in the year under consideration. The lower authority without verifying the veracity of assessee s claim rejected the rectification application 154 of the Act. In our considered opinion, the claim of the assessee needs to be verified as it appears to us there is a mistake in the order of the information generated under section 143(1) of the Act and needs to be rectified under the provisions of section 154 of the Act. Additional claim made by the assessee for the gratuity on payment basis - can the assessee make fresh claim in a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee was processed by making the addition of the above stated items aggregating to ₹ 1,03,72,719/- to the total income of the assessee. 3.2 The assessee moved an application under section 154 of the Act dated 11 January 2019 and on other dates stating that it has been allowed lesser depreciation by ₹ 1,03,72,719/- for which it was entitled. 3.3 The assessee further vide application dated 12th of February 2019 under section 154 of the Act elaborated the amount of less than depreciation allowed to it on account of mismatch in the figure by the ₹ 41,45,940/- and additional depreciation, 50% of which was claimed allowed in the earlier. 3.4 Besides the above the assessee also made a fresh claim by claiming deduction of the gratuity amounting to ₹ 21,09,538/- on payment basis which was according to the assessee omitted to be claimed as deduction in the original return of income. 4. However, the AO vide order dated 12 May 2020 rejected the rectification application filed by the assessee on the reasoning that the scope of section 154 of the Act is limited to the extent of the apparent mistake. As per the AO, the mistakes pointed out by the assessee in its applica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee to collect more tax than what is legally due under the provisions of law. 9. On the contrary, the ld. DR vehemently contended that provision of section 154 is limited to the correction of mistake which is an apparent mistake from record and not the mistake required to be established by long drawn argument. As per the learned DR there is no apparent mistake in the intimation generated under section 143(1) of the Act based on which the assessee s return of income can be verified or allowed deduction in the proceedings under section 154 of the Act. The ld. DR vehemently supported the order of the authorities below. 10. We have heard the rival contentions of both the parties and perused the materials available on record. The issue in the impugned case involves the disputes as detailed below: i. Mismatch in the amount of depreciation discussed above ₹ 41,45,940/- ii. Claim of additional depreciation of ₹ 62,26,779/- as discussed above, iii. Additional deduction of gratuity amount on payment basis which was not claimed in the original income tax return. 10.1 Regarding the mismatch in the amount of depreciation of ₹ 41,45,940/-, we find that the assessee wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... PC itself gives power to the assessee to move the rectification application under section 154 of the Act if the assessee is not satisfied with the information generated under section 143(1) of the Act. Such facts can be verified from the communication made by CPC place on page 44 of the paper book, relevant extract is reproduced as under: If you are not satisfied with the intimation u/s. 143(1), you may seek rectification as per section 154 by filing an online application for rectification, which details are available on website http.//incometaxindiaefiling.gov.in with your User ID and Password and choosing Rectification Request under My Account section. 10.4 Regarding the additional claim made by the assessee for the gratuity on payment basis, admittedly such claim was not made in the return of income and therefore the AO has no power to entertain such request of the assessee without having filed the revised return of income in pursuance to the judgement of Hon ble Supreme Court in the case of Goetze (India) Ltd vs. CIT reported in 284 ITR 323. However, the assessee has every right to make such claim before the higher forum which has also been held by the Hon ble supreme court in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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