INCOME TAX ACT, 1961

Section 154

Rectification - Mistake apparent - Assessee inserted some figures, being not in coherence with other figures in income tax return -

Assessee sought rectification under section 154 contending that wrong particulars were feed by it in income-tax return in Part C computation of fringe benefits and fringe benefit tax. Revenue rejected assessee's application on the reasoning that mistake was not rectified by assessee by filing a revised return within due time hence, there being no mistake in processing by department, there was no mistake apparent from record warranting any amendment in processing under section 115WE(1). Held: Merely because assessee had inserted some figures, which were not in coherence with other figures in income-tax return assessee could not be asked to pay tax on incorrect computation. He could be burdened with tax liability only on correct value of fringe benefits clearly, there was mistake apparent from the record, and, therefore, AO was not justified in rejecting application under section 154.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2007-08

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