The Income Tax Appellate Tribunal Recently held that assessee should file a rectification application to rectify typographical errors in Income Tax Return hence the assessee could not prefer appeal before ITAT.
Assessee Manjush Kumar has filed his return declaring an income of Rupees One crore and as per section 143(3) of the Income Tax Act, 1961 the assessing officer initiated assessment proceedings against the assessee and recomputed the income of the assessee .Against the order of the assessing officer assessee filed an appeal before Commissioner Of Income Tax Appeal (CIT(A).But the CIT A confirmed the order of the assessing officer. Against the order assessee filed an appeal before ITAT.
The assessee submit that there was a clerical mistake occur infilling Income Tax Return under the exempt Income but the Assessing officer failed to appreciate and the assessing office failed to appreciate that deduction claimed.
CIT(A) while considering the appeal of the assessee held that assessee himself has admitted that the addition was due to the clerical error done on the part of the assessee while filing the return hence assessee could free to move rectification application under section 154 of the Income Tax Act 1961.
Section 154 of the Income Tax Act 1961. Says that the income tax authority can amend any order for rectify the mistake in the assessing proceedings.
After considering contention of the division bench of the ITAT comprising B. R. R. Kumar, (Accountant Member) and Yogesh Kumar U.S. (Judicial Member) held that order of the CIT(A)neither erroneous nor has any legal infirmity in providing the liberty to more rectification application under section 154 of the Income Tax Act 1961.before Assessing Officer.
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