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Income Tax Appellate Tribunal, MUMBAI BENCH “G” MUMBAI
Before: SHRI OM PRAKASH KANT & MS. KAVITHA RAJAGOPAL
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-tax – National Faceless Appeal Centre, Delhi [in short ‘the Ld. CIT(A)’] in relation to rectification order passed by the Ld. Central Processing Centre (CPC), Bangalore u/s 154 of the Income-tax Act, 1961 (in short ‘the Act’) for assessment year 2017-18. The grounds raised by the assessee are reproduced as under:
Shilpa Prabhakar Kulkarni Shilpa Prabhakar Kulkarni 2 ITA No. No. 387/M/2023
On the facts and in the circumstances of the case, and On the facts and in the circumstances of the case, and On the facts and in the circumstances of the case, and in law, the NFAC erred in u in law, the NFAC erred in upholding the adjustment pholding the adjustment made by the A by adding an amount of Rs.55,26,484 made by the A by adding an amount of Rs.55,26,484 made by the A by adding an amount of Rs.55,26,484 under the head Salaries under the head Salaries The Appellant prays that such adjustment should be The Appellant prays that such adjustment should be The Appellant prays that such adjustment should be deleted. 2. On the facts and circumstances of the case and in law, 2. On the facts and circumstances of the case and in law, 2. On the facts and circumstances of the case and in law, the NFAC erred in levying additional the NFAC erred in levying additional interest under interest under Section 234B of the Act. Section 234B of the Act. The Appellant prays that the additional interest levied The Appellant prays that the additional interest levied The Appellant prays that the additional interest levied under Section 234B of the Act ought to be deleted. under Section 234B of the Act ought to be deleted. under Section 234B of the Act ought to be deleted. 3. On the facts and circumstances of the case and in law, On the facts and circumstances of the case and in law, On the facts and circumstances of the case and in law, the NFAC erred in levying additional interest under the NFAC erred in levying additional interest under the NFAC erred in levying additional interest under Section 234C of the Act. Section 234C of the Act. The Appellant prays that the additional interest levied The Appellant prays that the additional interest levied The Appellant prays that the additional interest levied under Section 234C of the Act ought to be deleted. under Section 234C of the Act ought to be deleted. under Section 234C of the Act ought to be deleted. 4. On the facts and in the circumstances of the case, and 4. On the facts and in the circumstances of the case, and 4. On the facts and in the circumstances of the case, and in law, the NFAC erred in upholding the adjustment in law, the NFAC erred in upholding the adjustment in law, the NFAC erred in upholding the adjustment made by the AO made by the AO of adding an amount of Rs. 35,26,484 of adding an amount of Rs. 35,26,484 which is not an income of the Appellant which is not an income of the Appellant The Appellant prays that the income of the Appellant to The Appellant prays that the income of the Appellant to The Appellant prays that the income of the Appellant to be correctly computed. be correctly computed. 5. On the facts and in the circumstances of the case, the 5. On the facts and in the circumstances of the case, the 5. On the facts and in the circumstances of the case, the order passed by the NFAC is bad in law as order passed by the NFAC is bad in law as it is passed it is passed without providing an opportunity of being heard to the without providing an opportunity of being heard to the without providing an opportunity of being heard to the assessee Prayer assessee Prayer The Appellant prays that the CIT(A) order to be The Appellant prays that the CIT(A) order to be The Appellant prays that the CIT(A) order to be considered as bad in law and void ab initio. considered as bad in law and void ab initio. 6. On the facts and in the circumstances of the case and On the facts and in the circumstances of the case and On the facts and in the circumstances of the case and in law, the NFAC erre in law, the NFAC erred in not quashing the rectification d in not quashing the rectification order passed under section 154 of the Income order passed under section 154 of the Income-tax Act, tax Act, 1961 (the Act) (the rectification order') by the Learned 1961 (the Act) (the rectification order') by the Learned 1961 (the Act) (the rectification order') by the Learned Deputy Commissioner of Income Tax, CPC Bangalore Deputy Commissioner of Income Tax, CPC Bangalore Deputy Commissioner of Income Tax, CPC Bangalore ("AO") and not treating the same as bad in law and void ("AO") and not treating the same as bad in law and void ("AO") and not treating the same as bad in law and void ab initio.
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Prayer The Appellant prays that the rectification Order is bad in The Appellant prays that the rectification Order is bad in The Appellant prays that the rectification Order is bad in law and void a initio and therefore, liable to be law and void a initio and therefore, liable to be quashed. 7. On the facts and in the circumstances of the case, and On the facts and in the circumstances of the case, and On the facts and in the circumstances of the case, and in law, the NFAC erred in not treating the rectification in law, the NFAC erred in not treating the rectification in law, the NFAC erred in not treating the rectification order passed by the AO as void ab initio, insofar as it sed by the AO as void ab initio, insofar as it sed by the AO as void ab initio, insofar as it has been passed in complete disregard of the principles has been passed in complete disregard of the principles has been passed in complete disregard of the principles of natural justice as, inter alia, the Appellant has not of natural justice as, inter alia, the Appellant has not of natural justice as, inter alia, the Appellant has not been provided with any opportunity of being heard. been provided with any opportunity of being heard. been provided with any opportunity of being heard. The Appellant prays that the rectification or The Appellant prays that the rectification or The Appellant prays that the rectification order is declared as void ab initio as it is passed without declared as void ab initio as it is passed without declared as void ab initio as it is passed without providing any opportunity of being heard to the providing any opportunity of being heard to the providing any opportunity of being heard to the Appellant. 8. On the facts and in the circumstances of the case and On the facts and in the circumstances of the case and On the facts and in the circumstances of the case and in law, the NFAC erred in not treating the rectification in law, the NFAC erred in not treating the rectification in law, the NFAC erred in not treating the rectification order bad in law to that order bad in law to that extent the income of the extent the income of the Appellant and the tax and the interest thereon have been Appellant and the tax and the interest thereon have been Appellant and the tax and the interest thereon have been computed erroneously based on erroneous conclusions computed erroneously based on erroneous conclusions computed erroneously based on erroneous conclusions and assertions of facts. and assertions of facts. The Appellant prays that rectification order is declared as The Appellant prays that rectification order is declared as The Appellant prays that rectification order is declared as bad in law. 2. In the grounds raised, In the grounds raised, the assessee is mainly aggrieved with the assessee is mainly aggrieved with the rejection of claim of rectification of the assessee and upholding the rejection of claim of rectification of the assessee and upholding the rejection of claim of rectification of the assessee and upholding the disallowance of Rs.35,26,484/ the disallowance of Rs.35,26,484/- i.e. which was claimed by the i.e. which was claimed by the assessee as various allowances exempted under the provisions of assessee as various allowances exempted under the provisions of assessee as various allowances exempted under the provisions of the Act.
Briefly stated, the assessee a salaried individual ly stated, the assessee a salaried individual ly stated, the assessee a salaried individual , filed her return of income on 01.08.2017 declaring total income of return of income on 01.08.2017 declaring total income of return of income on 01.08.2017 declaring total income of Rs.1,00,13,220/- out of which salary income offered to tax out of which salary income offered to tax out of which salary income offered to tax was of
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Rs.99,53,508/-. The return of income filed by the assessee was . The return of income filed by the assessee was . The return of income filed by the assessee was processed by the CPC vide order dated 27.03.2019 the CPC vide order dated 27.03.2019, wherein the the CPC vide order dated 27.03.2019 income under the head income under the head ‘salary’ was computed at Rs.1,35,19,922/ was computed at Rs.1,35,19,922/- as against the income from salary declared by assessee at as against the income from salary declared by assessee at as against the income from salary declared by assessee at Rs.99,53,508/-. In this manner total income was determined at this manner total income was determined at this manner total income was determined at Rs.1,35,41,560/- inste instead of Rs.1,00,13,220/- disclosed by the disclosed by the assessee. The assessee further filed rectification on 27.06.2019, assessee. The assessee further filed rectification on 27.06.2019 assessee. The assessee further filed rectification on 27.06.2019 wherein the assessee wherein the assessee requested that the assessee earned the assessee earned gross salary of Rs.1,35,19,992/ salary of Rs.1,35,19,992/- and out of which claimed and out of which claimed exemption u/s 10 of the Act of Rs.3 of Rs.35,26,484/-, which was inadvertently not which was inadvertently not reported in the relevant column of reported in the relevant column of the return of income filed the return of income filed i.e. “Schedule 5; details of income from salary details of income from salary” ”. According to assessee, this was a mistake apparent from record was a mistake apparent from record, in the was a mistake apparent from record intimation issued u/s 143(1) of t intimation issued u/s 143(1) of the Act and therefore, same was to he Act and therefore, same was to be rectified by the CPC. However, in the rectification order passed be rectified by the CPC. However, in the rectification order passed be rectified by the CPC. However, in the rectification order passed on 27.06.2019, the Assessing Officer on 27.06.2019, the Assessing Officer rejected the request of the rejected the request of the assessee in respect of claim of the exemption of the allowance of assessee in respect of claim of the exemption of the allowance of assessee in respect of claim of the exemption of the allowance of Rs.35,20,484/-. Aggriev . Aggrieved , the assessee filed appeal before the Ld. the assessee filed appeal before the Ld. CIT(A) but the Ld. CIT(A) rejected the contention of the assessee CIT(A) but the Ld. CIT(A) rejected the contention of the assessee CIT(A) but the Ld. CIT(A) rejected the contention of the assessee observing as under:
6. 6. The The The grounds grounds grounds of of of appeal, appeal, appeal, statement statement statement of facts, of facts, of facts, submissions of appellant and orders/intimations us submissions of appellant and orders/intimations us submissions of appellant and orders/intimations us 143(1) and 154 passed by 143(1) and 154 passed by the CPC are considered. the CPC are considered. Ground No. 1 to 5 relates and confined to upward Ground No. 1 to 5 relates and confined to upward Ground No. 1 to 5 relates and confined to upward variance of income by Rs.35,26,484/ variance of income by Rs.35,26,484/- by the CPC. by the CPC. Accordingly, all the grounds of appeal are adjudicated Accordingly, all the grounds of appeal are adjudicated Accordingly, all the grounds of appeal are adjudicated simultaneously. simultaneously.
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6.1. Therefore, The appellant claims that this amount of 6.1. Therefore, The appellant claims that this amount of 6.1. Therefore, The appellant claims that this amount of Rs.35,26,484/ 26,484/- represents exemption of us 10 of the represents exemption of us 10 of the Act. The appellant submitted detailed working of her Act. The appellant submitted detailed working of her Act. The appellant submitted detailed working of her taxable income. In view of the said working, the gross taxable income. In view of the said working, the gross taxable income. In view of the said working, the gross total total total income income income of of of appellant appellant appellant for for for the the the year year year under under under consideration was Rs. 1,35, 19,992/ consideration was Rs. 1,35, 19,992/-. This gross total . This gross total income is inconformity with the submission of the come is inconformity with the submission of the come is inconformity with the submission of the appellant and details recorded in Form 26AS of the appellant and details recorded in Form 26AS of the appellant and details recorded in Form 26AS of the appellant. For the sake of clarity, relevant abstract of appellant. For the sake of clarity, relevant abstract of appellant. For the sake of clarity, relevant abstract of form 26AS is reproduced below: form 26AS is reproduced below: Part-A Details of tax Deducted at Source A Details of tax Deducted at Source Sr. No. Name of Deductor TAN of Total Amount Total Total Tax Tax Total TDS Deductor paid/credited Dedcuted Dedcuted Deposited 1. Avezo Advisors Pvt. Avezo Advisors Pvt. MUMA46120E 13519992.00 2852130.00 2852130.00 2852130.00 Ltd. 6.2 On the other hand, the appellant has declared gross 6.2 On the other hand, the appellant has declared gross 6.2 On the other hand, the appellant has declared gross income from salary at Rs.99,93,508/ income from salary at Rs.99,93,508/- in the return of return of income. For the sake of convenience, relevant disclosure income. For the sake of convenience, relevant disclosure income. For the sake of convenience, relevant disclosure in the ITR is reproduced below. in the ITR is reproduced below. Part-B TI (Computation of total Income) B TI (Computation of total Income) 1. Salaries (6 of Schedule 5) Salaries (6 of Schedule 5) 9993508 Further, it also pertinent to mention here that the Further, it also pertinent to mention here that the Further, it also pertinent to mention here that the appellant did not claim appellant did not claim any exemption u/s 10 of the Act any exemption u/s 10 of the Act in the return of income. Relevant gist from the ITR is in the return of income. Relevant gist from the ITR is in the return of income. Relevant gist from the ITR is reproduced below: reproduced below: Schedule S : Details of Income from salary Schedule S : Details of Income from salary 1. Name of Avezo Advisors Pvt. Avezo Advisors Pvt. PAN of Employer (optional) Empoyer Ltd. Ltd. Address of 11 11th Fl. Nehru Town/City Mumbai Employer Centre Centre State Maharashtra Maharashtra Pincode 400018 1. Salary (Excluding all exempt/no Salary (Excluding all exempt/no-exempt allowances, exempt allowances, 9993508 perquisites & profit in lieu of salary as they are shown perquisites & profit in lieu of salary as they are shown perquisites & profit in lieu of salary as they are shown separately below) separately below) 2. Allowances not exempt (refer Form 16 Allowances not exempt (refer Form 16 from employer) from employer) 0 3. Value of perquisites (refer Form 16 from employer) Value of perquisites (refer Form 16 from employer) Value of perquisites (refer Form 16 from employer) 0 4. Profits in lieu of salary (refer Form 16 employer) Profits in lieu of salary (refer Form 16 employer) 0 5. Deduction Deduction Deduction u/s u/s u/s 16 16 16 (Entertainment (Entertainment (Entertainment allowance allowance allowance by by by 0 Government and tax on employment Government and tax on employment 6. Income chargeable under the head Income chargeable under the head (1+2+3+4+5) 7. Allowances exempt under section 10 (Not to be included Allowances exempt under section 10 (Not to be included Allowances exempt under section 10 (Not to be included in 6 above) in 6 above) i. i. Travel Travel concession/assistance concession/assistance received (sec. received (sec. 0 10(5) ii. ii. Tax Paid by employer on non-monetary monetary 0
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perquisite (sec. 10(10CC) iii. iii. Allowance to meet expenditure incurred on incurred on 0 house rent [(sec. 10(13A)] iv. iv. Other allowances 0 2. Total Income chargeable Total Income chargeable 9993508 6.3 Considering all the facts, it is culled that the 6.3 Considering all the facts, it is culled that the 6.3 Considering all the facts, it is culled that the appellant did not disclose gross total income in her ITR. appellant did not disclose gross total income in her ITR. appellant did not disclose gross total income in her ITR. Rather, net income (after claiming Rather, net income (after claiming exemption Us 10 of the exemption Us 10 of the Act of Rs.35,26,484/ Act of Rs.35,26,484/-) was declared in the ITR. ) was declared in the ITR. Therefore, the averments at para 2.17 of the submission Therefore, the averments at para 2.17 of the submission Therefore, the averments at para 2.17 of the submission of the appellant inasmuch as the appellant has claimed of the appellant inasmuch as the appellant has claimed of the appellant inasmuch as the appellant has claimed exemption under section 10 in the return of income is not exemption under section 10 in the return of income is not exemption under section 10 in the return of income is not correct and misl correct and misleading. 6.3.1 The appellant has stated that she had included 6.3.1 The appellant has stated that she had included 6.3.1 The appellant has stated that she had included income appearing in Form 26AS in the return of income. income appearing in Form 26AS in the return of income. income appearing in Form 26AS in the return of income. The relevant paragraph 2.27 of the submission of the The relevant paragraph 2.27 of the submission of the The relevant paragraph 2.27 of the submission of the appellant is reproduced herein under: appellant is reproduced herein under: Further, Further, Further, the the the appellant have included appellant have included appellant have included the income the income the income appearing in Form 26AS and Form 16 while filing the ppearing in Form 26AS and Form 16 while filing the ppearing in Form 26AS and Form 16 while filing the return of income for AY 2017 return of income for AY 2017-18. Thus, there is no income 18. Thus, there is no income appearing in Form 16 or Form 26AS which has not been appearing in Form 16 or Form 26AS which has not been appearing in Form 16 or Form 26AS which has not been included in computing the total income of the appellant in included in computing the total income of the appellant in included in computing the total income of the appellant in the returm of income. Accordingly, the returm of income. Accordingly, the adjustment under the adjustment under sub-clause (vi) of section 143(1)(a) should not be clause (vi) of section 143(1)(a) should not be clause (vi) of section 143(1)(a) should not be applicable. In view of the above referred abstracts of IT, Form 26AS In view of the above referred abstracts of IT, Form 26AS In view of the above referred abstracts of IT, Form 26AS and relevant Schedule S, the averments of the appellant and relevant Schedule S, the averments of the appellant and relevant Schedule S, the averments of the appellant is not correct. On the other hand, while processing the IT, is not correct. On the other hand, while processing the IT, is not correct. On the other hand, while processing the IT, CPC found that income from salary of the appellant has CPC found that income from salary of the appellant has CPC found that income from salary of the appellant has been reported at Rs. 1,35,19,992/ been reported at Rs. 1,35,19,992/- in form26AS as in form26AS as against Rs.99,93,508/ against Rs.99,93,508/- declared in the IT. The CPC, declared in the IT. The CPC, while processing the IT, has thus, computed income from while processing the IT, has thus, computed income from while processing the IT, has thus, computed income from salary at Rs. 1,35, 19,992 salary at Rs. 1,35, 19,992 - instead of Rs.99,93.508/ .99,93.508/- declared in the ITR. This action of CPC is in conformity declared in the ITR. This action of CPC is in conformity declared in the ITR. This action of CPC is in conformity with the provisions of section 143(1)(a)(vi) of the 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 6.4 It is also a matter of fact that the provisions of section 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 143(1)(a)(vi) of the Act empowers the CPC for adjustment 143(1)(a)(vi) of the Act empowers the CPC for adjustment of income in v of income in view of form 26AS, Form 16 and Form 16A iew of form 26AS, Form 16 and Form 16A of the Act.
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The The The appellant appellant appellant emphasised emphasised emphasised that that that the the the said said said section section section 143(1)(a)(vi) has been amended by a proviso below it, 143(1)(a)(vi) has been amended by a proviso below it, 143(1)(a)(vi) has been amended by a proviso below it, whereby whereby whereby such such such powers powers powers granted granted granted to to to CP CP CP regarding regarding regarding enhancement have been curtailed. enhancement have been curtailed. In this connection, it is v In this connection, it is very important to note that such ery important to note that such powers have been withdrawn we.f. assessment year powers have been withdrawn we.f. assessment year powers have been withdrawn we.f. assessment year 2018-19. However, the year under consideration is A. Y. 19. However, the year under consideration is A. Y. 19. However, the year under consideration is A. Y. 2017-18. The CPC was empowered to make adjustment 18. The CPC was empowered to make adjustment 18. The CPC was empowered to make adjustment in the income on the basis of inter alia Form 26AS. The in the income on the basis of inter alia Form 26AS. The in the income on the basis of inter alia Form 26AS. The CPChas correc CPChas correctly enhanced income of the appellant. tly enhanced income of the appellant. 6.4.1 So far as claim of the appellant is concerned about 6.4.1 So far as claim of the appellant is concerned about 6.4.1 So far as claim of the appellant is concerned about exemption us 10 of the Act, it is abruptly clear from the exemption us 10 of the Act, it is abruptly clear from the exemption us 10 of the Act, it is abruptly clear from the TR (reproduced above har such claim was never made in TR (reproduced above har such claim was never made in TR (reproduced above har such claim was never made in the iTe The appellant did not follow correct pro the iTe The appellant did not follow correct procedure for cedure for disclosing income and claiming exemption in IT. The disclosing income and claiming exemption in IT. The disclosing income and claiming exemption in IT. The appellant must have declared correct income in the ITR, appellant must have declared correct income in the ITR, appellant must have declared correct income in the ITR, i.e. Rs. 1,35, 19,9921 i.e. Rs. 1,35, 19,9921-. Then the appellant can claim exemption u/s 10 of the Act Then the appellant can claim exemption u/s 10 of the Act Then the appellant can claim exemption u/s 10 of the Act in the relevant schedule of IT. On the contrary, the in the relevant schedule of IT. On the contrary, the in the relevant schedule of IT. On the contrary, the appellant has reduced gross salary income by the pellant has reduced gross salary income by the pellant has reduced gross salary income by the amount of exemption uls 10 of the Act and declared net amount of exemption uls 10 of the Act and declared net amount of exemption uls 10 of the Act and declared net amount in the IT. On the basis of this material fact it is amount in the IT. On the basis of this material fact it is amount in the IT. On the basis of this material fact it is held that the judicial pronouncements relied upon by the held that the judicial pronouncements relied upon by the held that the judicial pronouncements relied upon by the appellant are on different set of fact appellant are on different set of facts which are not s which are not applicable to the facts and circumstances of the applicable to the facts and circumstances of the applicable to the facts and circumstances of the appellant's case. In the instant case, it is the assessee appellant's case. In the instant case, it is the assessee appellant's case. In the instant case, it is the assessee who did not fill IT/ROl with correct values and make who did not fill IT/ROl with correct values and make who did not fill IT/ROl with correct values and make claim of exemption Us 10 of the Act. The appellant had, claim of exemption Us 10 of the Act. The appellant had, claim of exemption Us 10 of the Act. The appellant had, rather, declared income rather, declared income after deduction of exemption u/s after deduction of exemption u/s 10 of the Act. Such mistake is not a mistake within the 10 of the Act. Such mistake is not a mistake within the 10 of the Act. Such mistake is not a mistake within the purview of section 154 of the/Act. The only recourse purview of section 154 of the/Act. The only recourse purview of section 154 of the/Act. The only recourse available with the appellant was to file revised return available with the appellant was to file revised return available with the appellant was to file revised return and fill covet values of income and exemption. and fill covet values of income and exemption. 6.5 The provisions of section 154 of the Act are enacted visions of section 154 of the Act are enacted visions of section 154 of the Act are enacted for the purpose of any mistake apparent from record. for the purpose of any mistake apparent from record. for the purpose of any mistake apparent from record. This section is not meant for rectification of mistake made This section is not meant for rectification of mistake made This section is not meant for rectification of mistake made by the appellant while filling return of income. Such by the appellant while filling return of income. Such by the appellant while filling return of income. Such omission/rectification can only be rectifie omission/rectification can only be rectified by filing d by filing revised return of income that too within the time allowed revised return of income that too within the time allowed revised return of income that too within the time allowed us 139 of the Act. The appellant has sought for us 139 of the Act. The appellant has sought for us 139 of the Act. The appellant has sought for
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rectification of mistake on the claim of exemption which rectification of mistake on the claim of exemption which rectification of mistake on the claim of exemption which was never disclosed in the IT. The appellant has also was never disclosed in the IT. The appellant has also was never disclosed in the IT. The appellant has also failed to submit relevant d failed to submit relevant documents in support of her ocuments in support of her claim claim claim of of of exemption exemption exemption during during during the the the present present present appeal appeal appeal proceedings. proceedings. proceedings. Mere Mere Mere claim claim claim of of of exemption exemption exemption in in in a a a submission/form 16 cannot entail allowability of such submission/form 16 cannot entail allowability of such submission/form 16 cannot entail allowability of such claim. Further, as discussed above, in the year under claim. Further, as discussed above, in the year under claim. Further, as discussed above, in the year under consideration, i.e. A.Y. 2017 consideration, i.e. A.Y. 2017-18, the provisions of section the provisions of section 143(1)(a)(vi) 143(1)(a)(vi) 143(1)(a)(vi) of of of the the the Act Act Act empowered empowered empowered PC PC PC to to to make make make adjustment for income appearing in Form 26AS. adjustment for income appearing in Form 26AS. 6.6 Considering all the facts of the case and pre 6.6 Considering all the facts of the case and pre 6.6 Considering all the facts of the case and pre- amended provisions of section 143(1)(a)(vi) of the Act, amended provisions of section 143(1)(a)(vi) of the Act, amended provisions of section 143(1)(a)(vi) of the Act, there isn't any mistake which is there isn't any mistake which is apparent from record. apparent from record. The upward adjustment made by the appellant is, thus, The upward adjustment made by the appellant is, thus, The upward adjustment made by the appellant is, thus, upheld. Accordingly, all the grounds at Sr. No. 1 to 5 of upheld. Accordingly, all the grounds at Sr. No. 1 to 5 of upheld. Accordingly, all the grounds at Sr. No. 1 to 5 of appeal related to section 154 and upward adjustment of appeal related to section 154 and upward adjustment of appeal related to section 154 and upward adjustment of income are hereby dismissed. income are hereby dismissed.” 4. Before us, the Ld. Counsel of the Before us, the Ld. Counsel of the assessee filed a Paper Book assessee filed a Paper Book containing pages 1 to 156. containing pages 1 to 156.
We have heard rival submission of the parties on the issue We have heard rival submission of the parties on the issue We have heard rival submission of the parties on the issue-in- dispute and perused the relevant material on record. The issue in dispute and perused the relevant material on record. The issue dispute and perused the relevant material on record. The issue dispute in the case is whether there was any mistake apparent from in the case is whether there was any mistake apparent from 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 order passed u/s 143(1) of the Act. The assessee order passed u/s 143(1) of the Act. The assessee has claimed to have received gross salary of Rs.1,35,19,992/-. has claimed to have received gross salary of Rs.1,35,19,992/ has claimed to have received gross salary of Rs.1,35,19,992/ According to the assessee this gross salary included allowance in According to the assessee this gross salary included According to the assessee this gross salary included the nature of house rent allowance, leave travel concession etc. the nature of house rent allowance, leave travel concession e the nature of house rent allowance, leave travel concession e amounting to Rs.35,26,484/ amounting to Rs.35,26,484/-, which are exempted subject to , which are exempted subject to provisions of section 10 of the Act. B provisions of section 10 of the Act. But we find that in the relevant ut we find that in the relevant column for the income from salary column for the income from salary in the return of income, in the return of income, the assessee only declared salary income of Rs.99,93,508/- and under assessee only declared salary income of Rs.99,93,508/ assessee only declared salary income of Rs.99,93,508/ the relevant column for exempted the relevant column for exempted amount Nil or zero amount has Nil or zero amount has
Shilpa Prabhakar Kulkarni Shilpa Prabhakar Kulkarni 9 ITA No. No. 387/M/2023
. The relevant part of the ‘Schedule Schedule 5: details of been reported. The relevant part of the income from salary income from salary’ of the return filed by the assessee is of the return filed by the assessee is reproduced as under: reproduced as under:
Schedule S : Details of Income from salary Schedule S : Details of Income from salary 1. Name of Avezo Advisors Pvt. Avezo Advisors Pvt. PAN of Employer (optional) Empoyer Ltd. Ltd. Address of 11 11th Fl. Nehru Town/City Mumbai Employer Centre Centre State Maharashtra Maharashtra Pincode 400018 1. Salary (Excluding all exempt/no Salary (Excluding all exempt/no-exempt allowances, exempt allowances, 9993508 perquisites & profit in lieu perquisites & profit in lieu of salary as they are shown of salary as they are shown separately below) separately below) 2. Allowances not exempt (refer Form 16 from employer) Allowances not exempt (refer Form 16 from employer) Allowances not exempt (refer Form 16 from employer) 0 3. Value of perquisites (refer Form 16 from employer) Value of perquisites (refer Form 16 from employer) Value of perquisites (refer Form 16 from employer) 0 4. Profits in lieu of salary (refer Form 16 employer) Profits in lieu of salary (refer Form 16 employer) 0 5. Deduction Deduction u/s u/s 16 16 (Entertainment (Entertainment allowance allowance by by 0 Government and tax on employment Government and tax on employment 6. Income chargeable under the head (1+2+3+4+5) Income chargeable under the head (1+2+3+4+5) 7. Allowances exempt under section 10 (Not to be included Allowances exempt under section 10 (Not to be included Allowances exempt under section 10 (Not to be included in 6 above) in 6 above) i. i. Travel Travel concession/assistance concession/assistance received (sec. received (sec. 0 10(5) ii. ii. Tax Paid by employer on non-monetary monetary 0 perquisite (sec. 10(10CC) iii. iii. Allowance to meet expenditure incurred on Allowance to meet expenditure incurred on 0 house rent [(sec. 10(13A)] iv. iv. Other allowances 0 2. Total Income chargeable Total Income chargeable 9993508
5.1 The assessee did not revise its return of income The assessee did not revise its return of income The assessee did not revise its return of income and after processing of the return of income processing of the return of income, filed rectification application filed rectification application dated 27.06.2019 wherein the assessee filed the details of the dated 27.06.2019 wherein the assessee filed the details of the dated 27.06.2019 wherein the assessee filed the details of the income from the salary in Schedule V. The relevant part of said income from the salary in Schedule V. The relevant part of said income from the salary in Schedule V. The relevant part of said rectification request is reproduced as under: ctification request is reproduced as under:
Schedule S : Details of Income from salary Schedule S : Details of Income from salary 1. Name of Avezo Avezo Advisors Advisors PAN of Employer (optional) Empoyer Pvt. Ltd. Pvt. Ltd. Address of 11th th Fl. Nehru Town/City Mumbai Employer Centre Centre State Maharashtra Maharashtra Pincode 400018 1. Salary (Excluding all exempt/no-exempt allowances, Salary (Excluding all exempt/no exempt allowances, 9993508 perquisites & profit in lieu of salary as they are shown perquisites & profit in lieu of salary as they are shown perquisites & profit in lieu of salary as they are shown separately below) separately below)
Shilpa Prabhakar Kulkarni Shilpa Prabhakar Kulkarni 10 ITA No. No. 387/M/2023
Allowances not exempt (refer Form 16 from employer) Allowances not exempt (refer Form 16 from employer) Allowances not exempt (refer Form 16 from employer) 0 3. Value of perquisites (refer Form 16 from employer) Value of perquisites (refer Form 16 from 0 4. Profits in lieu of salary (refer Form 16 employer) Profits in lieu of salary (refer Form 16 employer) 0 5. Deduction Deduction Deduction u/s u/s u/s 16 16 16 (Entertainment (Entertainment (Entertainment allowance allowance allowance by by by 2500 Government and tax on employment Government and tax on employment 6. Income chargeable under the head (1+2+3+4+5) Income chargeable under the head (1+2+3+4+5) 9993508 7. Allowances exempt under section 10 (Not to be included Allowances exempt under section 10 (Not to be included in 6 above) in 6 above) i. Travel concession/assistance received (sec. 72784 10(5) ii. Tax Paid by employer on non-monetary 0 perquisite (sec. 10(10CC) iii. Allowance to meet expenditure incurred on 3417000 house rent [(sec. 10(13A)] iv. Other allowances 34200 2. Total Income chargeable Total Income chargeable 9993508 Schedule HP: Details of Income from House Property Schedule HP: Details of Income from House Property 5.2 The rectification request of the assessee has been rejected by The rectification request of the assessee has been rejected by The rectification request of the assessee has been rejected by the Assessing Officer on the ground that there was no mistake the Assessing Officer on the ground that there was no mistake the Assessing Officer on the ground that there was no mistake apparent from the record in the order passed u/s 143(1)(a) of the apparent from the record in the order passed u/s 143(1 apparent from the record in the order passed u/s 143(1 Act as no claim of the amount of the exempted allowance was made Act as no claim of the amount of the exempted allowance was Act as no claim of the amount of the exempted allowance was in the return of income and therefore, there being difference in the in the return of income and therefore, there being difference in the in the return of income and therefore, there being difference in the amount of salary appearing in the Form No. 26AS i.e. amount of amount of salary appearing in the Form No. 26AS i.e. amo amount of salary appearing in the Form No. 26AS i.e. amo salary appearing in the database in the Income appearing in the database in the Income-tax Department tax Department prepared on the basis of the information from the employer , and prepared on the basis of the information from the employer prepared on the basis of the information from the employer the salary income declared by the assessee in the return of income, the salary income declared by the assessee in the return of income the salary income declared by the assessee in the return of income the CPC adjusted salary income at the amount of Rs.1,35,99,992/- the CPC adjusted salary income at the amount of Rs.1,3 the CPC adjusted salary income at the amount of Rs.1,3 as against the salary income of Rs.99,93,508/ as against the salary income of Rs.99,93,508/- declared declared by the assessee in the return of income. Thus assessee in the return of income. Thus, in nutshell it can be said nutshell it can be said that assessee did not make any claim for exempted allowance of that assessee did not make any claim for exempted allowance of that assessee did not make any claim for exempted allowance of Rs.35,26,484/- in the return of income in the return of income. In our opini . In our opinion, omission was on the part of the assessee and therefore, there is no mistake in was on the part of the assessee and therefore, there is no mistake in 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 the order passed u/s 143(1) by the CPC. Accordingly, we uphold the the order passed u/s 143(1) by the CPC. Accordingly, we uphold the
Shilpa Prabhakar Kulkarni Shilpa Prabhakar Kulkarni 11 ITA No. No. 387/M/2023
finding of the Ld. CIT(A) finding of the Ld. CIT(A) of rejecting the claim of rejecting the claim of rectification of order u/s 143(1)(a) of the Act of the Act.
5.3 However, before us an alternative plea was raised. It was , before us an alternative plea was raised. It was , before us an alternative plea was raised. It was submitted that the ld CIT(A) has rejected the claim of allowing submitted that the ld CIT(A) has rejected the claim of allowing submitted that the ld CIT(A) has rejected the claim of allowing relevant exemption on merit., relevant exemption on merit.,We find that the assessee made a the assessee made a fresh claim before the Ld. CIT(A) which was rejected by the Ld. fresh claim before the Ld. CIT(A) which was rejected by the Ld. fresh claim before the Ld. CIT(A) which was rejected by the Ld. CIT(A) on the ground that no relevant n the ground that no relevant documents documents in support of exemption was filed during the first appellate proceedings before appellate proceedings before him and said claim of exemption him and said claim of exemption was sought merely on the basis of merely on the basis of the Form No. 16. But we are of the opinion that if the assessee is But we are of the opinion that if the assessee is But we are of the opinion that if the assessee is otherwise eligible for exemption under the provisions of the Act, she erwise eligible for exemption under the provisions of the Act, she erwise eligible for exemption under the provisions of the Act, she should not be deprived merely for the reason that she failed to should not be deprived merely for the reason that she failed to should not be deprived merely for the reason that she failed to report the claim properly in the form prescribed for filing return of report the claim properly in the form prescribed for filing return of report the claim properly in the form prescribed for filing return of income. The Ld. counsel of the assessee submitted that counsel of the assessee submitted that counsel of the assessee submitted that the assessee is willing to produce all the documents in support of assessee is willing to produce all the documents assessee is willing to produce all the documents exemption claimed, if matter is restored back to the Assessing , if matter is restored back to the Assessing , if matter is restored back to the Assessing Officer. In the interest of substantial justice, we feel it appropriate In the interest of substantial justice, we feel it appropriate In the interest of substantial justice, we feel it appropriate to restore this issue back to the file of the Assessin to restore this issue back to the file of the Assessing Officer with the g Officer with the direction to the assessee to the assessee to produce all necessary evidence in to produce all necessary evidence in support support of of its its claim claim of exemption exemption of of the the allowances allowances of of Rs.35,26,484/-. The Ld. Assessing Officer is directed to . The Ld. Assessing Officer is directed to examine the . The Ld. Assessing Officer is directed to said claim and allow said claim and allow in accordance with law after after due verification and enquiry if so required and enquiry if so required. The grounds of appeal of the assessee . The grounds of appeal of the assessee are accordingly allowed partly for statistical purposes. are accordingly allowed partly for statistical purposes. are accordingly allowed partly for statistical purposes.
Shilpa Prabhakar Kulkarni Shilpa Prabhakar Kulkarni 12 ITA No. No. 387/M/2023
In the result, the appeal of the assessee is allowed partly for In the result, the appeal of the assessee is allowed partly for In the result, the appeal of the assessee is allowed partly for statistical purposes.
Order pronounced in the op Order pronounced in the open Court on 11/05/2023. /05/2023. Sd/ Sd/- Sd/- Sd/ (KAVITHA RAJAGOPAL KAVITHA RAJAGOPAL) (OM PRAKASH KANT OM PRAKASH KANT) JUDICIAL MEMBER JUDICIAL MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER Mumbai; Dated: 11/05/2023 Rahul Sharma, Sr. P.S. Copy of the Order forwarded to Copy of the Order forwarded to : 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. BY ORDER, BY ORDER, //True Copy// (Assistant Registrar) (Assistant Registrar) ITAT, Mumbai ITAT, Mumbai