RAJIV VENKATARAMAN,SECUNDERABAD vs. ACIT, CIRCLE-2(2), HYDERABAD

Brief facts are that, assessee filed the return of income on 05/08/2017 basing on the entries in Form No. 26AS. There was a difference in the amounts mentioned in Form No. 26AS and the income disclosed in the return of income filed by the assessee. Insofar as this appeal is concerned, it relates to the sum mentioned as other sources to the tune of Rs. 2,52,352/-. This amount comprises of Rs.27,352/- added on the ground that the assessee did not fill in schedule PTI in the return of income and Rs. 2.25 lacs said to have been received by the assessee towards survival benefit from LIC on a single premium policy. 3. While processing the return of income, these two sums were added to the income of the assessee. Assessee filed an application for rectification showing the and claiming exemption of Rs.2.25 lacs, and also explaining the difference in respect of Rs. 27,352/-. Such an obligation of the assessee was rejected by CPC. 4. Assessee, therefore, preferred appeal before the Ld. CIT(A). Ld. CIT(A) accepted the explanation of the assessee in respect of Rs.27,352/- and granted relief to such an extent. Ld. CIT(A), however, recorded that the assessee had shown exempt income of Rs. 72,40,321/- in the return of income, but the same was not increased to Rs. 74,65,321/- in the rectification application by showing Rs.2.25 lacs as a survival benefit received from LIC on single premium policy as ‘exempt income’, but the rectification application that was filed on 25/06/2020 was showing the corrected return of income. Since the claim of exempt income of Rs.2.25 lacs was made for the first time to the rectification application, Ld. CIT(A) held that the same is impermissible in law and accordingly rejected the same. 5. Assessee is therefore, before us in this appeal contending that it is quite incorrect on the part of the Ld. CIT(A) to say that an exempt income cannot be brought on record by way of a rectification application, because such a claim of the assessee does not alter the total income returned

Learned AR further submits that in view of the decision of the Hon’ble Apex Court in the case of NTPC vs. CIT (1998) 229 ITR 383 and Goetze (India) Ltd vs. CIT (2006) 284 ITR 323 (SC) it is always open for the assessee to raise the points of law even before the appellate authorities, when consideration thereof does not require any new documents or introduction of new facts. He further submitted that it is always open for the First Appellate Authority to consider a claim permissible under law preferred by the assessee otherwise than by filing a revised return. 7. Per contra, it is the submission of the learned DR that the assessee preferred the claim relating to the exempt of income of Rs. 2.25 lacs first time by way of an application for rectification and since no revised return of income was filed such a claim was rightly rejected by the CPC, and the assessee cannot have any grievance, because not considering what was not there on record cannot be said as mistake apparent on record. He accordingly justifies the orders of the authorities below. 8. We have gone through the record in the light of the submissions made on either side. It is an undisputed fact that the assessee filed an application on 25/06/2020 wherein the corrected return of income was filed and claim of exempt income of Rs.2.25 lacs was made. Ld. CIT(A), however, did not consider the request of the assessee on the ground that the assessee had shown the exempt income at Rs. 72.40 lacs in the return

In the result, appeal of the assessee is treated as allowed for statistical purpose.