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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 ..... ar 2015-2016. 2. The solitary grievance of the assessee is that the learned CIT(A) erred in confirming the order of the AO by rejecting the rectification application of the assessee filed under section 154 of the Act. 3. The necessary facts as arising from the order of the authorities below are that the assessee in the present case, a limited company, is engaged in the business of manufacturing and job work in electronically engraved copper rollers, lasers and chemical etching used in printing and packing industry. The AO while processing the return under section 143(1) of the Act has made the following adjustments to the total income of the assessee: i. Adjustment of depreciation for Rs. 41,45,940/- on account of mismatch in the amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 application were not representing the apparent mistakes. 5. On appeal to the learned CIT(A), the finding of the AO was confirmed on the same reasoning that there is no mistake apparent from record without going into the argument raised by the assessee in the application filed under section 154 of the Act. 6. Being aggrieved by the order of the learned CIT(A), the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot be deprived of the benefit for which he is entitled under the provisions of the Act. As per the learned AR, the assessee omitted to make a genuine claim of deduction of gratuity on payment basis. As per learned AR the assessee, though omitted to claim the benefit of gratuity amount on payment basis but the same claim can be raised before the authorities. The learned AR also refer to the circular issued by the CBDT bearing number 14(XL-35 dt. 11-04-1955 stating that the department must not take the advantages of ignorance of 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 i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . This amount can be verified from audited financial statement of the assessee available on record, more particularly from page number 47 and 56 of the financial statements where the profit and loss account and fixed asset schedule is available. We have also perused the ITR of the assessee filed in form ITR-6 and note that in Profit and loss account reported in ITR-6 in schedule "Part A- P&L the assessee at column number 44 shown depreciation amount at Rs. 6,65,43,786/-only. Hence, there is mismatch in the amount of depreciation as per books reported at 2 different places which not been verified by the authority. Therefore, in our considered view that there is mismatch in the amount of depreciation which needs to be looked into and same nee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imation 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 t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t limited to correct the error committed by the subordinate authorities but could even be exercised where errors are committed by the assessee. It would even cover situation where the assessee because of an error has not put forth legitimate claim at the time of filing the return and the error is subsequently discovered and is raised for the first time in an application under section 264. [Para 11] In the case of Asmita A. Damale v. CIT [Writ Petition No. 676 of 2014, dated 9-5-2014] the Court had held that the Commissioner while exercising revisionary powers under section 264 has to ensure that there is relief provided to assessee where the law permits the same. [Para 12] 10.5 In view of the above and considering the facts in totality, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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