INCOMETAX OFFICER, WARD-5(3)(2), AHMEDABAD, AHMEDABAD vs. TANMAI RAJ GOPAL, AHMEDABAD

The order of the Ld. CIT(A) reveals that he noted the Assessing Officer to have conducted fair and complete enquiry and accepting the explanation of the assessee on the issue raised made no variation to the income of the assessee. The error lay only in the computation sheet which was attached with the assessment order and noting that the contradiction in the computation sheet could not override the main findings of the assessment,he therefore, held that the addition made to the income of the assessee in the computation sheet alone was not sustainable and accordingly, he allowed the appeal filed by the assessee. The relevant “The assessee relied on case law to support the proposition that in cases of dual residency, the tie-breaker rule under Article 4(2) of the DTAA determines the country of ultimate tax residence, and income arising to such an individual during the period he is a resident of the other country cannot be taxed in India. The legal precedents cited by the assessee are relevant and squarely applicable to the facts of the present case, particularly with reference to the exemption of foreign capital gains and salary in light of the residential tiebreaker provisions under the DTAA. In view of the above facts and legal position, it is evident that the AO’s action in the assessment proceedings was not inconsistent. The AO conducted a fair and complete inquiry, accepted the explanation, and rightly did not propose any variation. The error lies only in the computation sheet, which is inconsistent with the body of the assessment order. Such contradiction cannot override the main findings of the assessment and therefore cannot be sustained. Accordingly, the appeal of the assessee is allowed. The inclusion of exempt capital gains of 9,25,60,844 in the computation sheet is directed to be deleted. The refund of 2,79,77,705 as claimed in the return is to be granted. Interest levied under section 234D, if arising from the incorrect computation, shall be withdrawn. The AO is directed to issue a revised computation sheet in line with the findings recorded in the assessment order.

In the result, the appellant’s appeal is Allowed.”

On going through the order of the Assessing Officer we find that he has noted at Page 5 of his order that from the explanation offered by the assessee it was verified by him that the taxable income has been disclosed correctly in his ITR and refund claim was justified. The explanation offered and supporting documents provided by the assessee were thoroughly verified by him and found to be in order and noting so he accepted the returned income filed by the assessee. The findings of the Assessing Officer in this regard are contend at Page 5 and 6 of his order:

“From the explanation offered by the assessee, it was verified that the taxable income has been disclosed correctly in his ITR and refund claimed was justified. The explanations offered and supporting documents provided by the assessee were thoroughly verified and found to be in order. Consequently, no adjustments are necessary for the assessment year.

Ld. DR was unable to controvert the facts on record in the assessment order where no variation was done by the Assessing Officer and the facts in this regard as noted by the Ld. CIT(A) also.

In view of the above we see no reason to disagree with the Ld. CIT(A). The Assessing Officer having made no variation in the income returned by the assessee after accepting the explanation furnished by the assessee and finding it to be correct, the Ld. CIT(A) we hold has rightly ITO vs. Tanmai Raj Gopal Asst.Year –2022-23 - 5 - directed deletion of the adjustment made to the income of the assessee in the computation sheet furnished along with the assessment order.

The appeal of the Revenue therefore is dismissed. This Order pronounced in Open Court on 26/02/2026