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January 3, 2023

Typographical errors must be fixed using the rectification application required by Section 154.

by CA Shivam Jaiswal in Income Tax

Typographical errors must be fixed using the rectification application required by Section 154.

Fact and Issue of the case

Brief facts of the case are that, the assessee has filed his return declaring an income of Rs.1,08,39,740/. The assessment proceedings have been initiated against the assessee and an order u/s 143(3) of the Income Tax Act (‘Act’ for short) was passed on 13/12/2018 by assessing the income of the assessee.

As against the assessment order the assessee has preferred an appeal before the CIT(A). The CIT (A) has confirmed the assessment order and observed that the addition of Rs. 7,50,096/- on account of difference in exempt income claimed by the assessee and the document furnished during the assessment proceedings further the assessee himself has admitted that the addition was due to the clerical error done on the part of the assessee while filing the return. Therefore, the Ld. CIT(A) was of the opinion that the assessee is free to move rectification application u/s 154 of the Act to the A.O. Accordingly, dismissed the appeal on 13/12/2018. Aggrieved by the order of the CIT(A) dated 13/12/2018 the present appeal has been preferred by the assessee.

Observation of the Tribunal

The Tribunal heard the parties perused the material available on record and gave our thoughtful consideration. It is the specific case of the assessee before the CIT(A) that the addition of Rs. 7,50,096/- was on the account of difference in exempt income claimed by the assessee and the document furnished during the assessment proceedings. It has been admitted by the assessee himself vide written statement filed before the A.O., that the above addition was made due to the clerical error done on the part of the assessee while filing the return and accordingly, the Ld. AR has made a submission before the CIT(A) to allow the assessee to rectify his mistake u/s 154 of the Act. Considering the admitted error of the assessee, the CIT (A) has rightly provided liberty to the assessee to move rectification application u/s 154 of the Act before the A.O. Further, tribunal is of the opinion that, if there is any typographical error the assessee has to invoke the Section 154 of the Act and not the Appellate Jurisdiction to rectify the mistakes committed during the assessment proceedings. In our opinion, the order of the CIT(A) neither erroneous nor has any legal infirmity in providing the liberty to more rectification application u/s 154 of the Act before A.O., thus, we do not find merit in the grounds of appeal of the assessee, therefore, the Assessee’s grounds of appeal are dismissed. In the result, the appeal filed by the assessee is dismissed.

Conclusion

The Tribunal ruled in favour of the assessee stating that the CIT(A) neither erroneous nor has any legal infirmity in providing the liberty to more rectification application u/s 154 of the Act before A.O., thus, tribunal do not find merit in the grounds of appeal of the assessee

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