Sh. Sudhir Kumar Singh, Agra V. I.T.O.-1(2), Agra

ITA 172/AGR/2012

• Counselvise Citation: 17220314 RSA 2012
• Duration Of Justice: 42 year(s) 10 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-11-2012
• Appeal Filed By: Assessee
• Assessment Year: misc
• Appeal Filed On: 01-01-1970
• Court: TRIBUNAL
• Department Lawyers: KK MISHRA
• Keywords: Earning of tax free income; Revised return

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, AGRA BENCH, AGRA BEFORE : SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI A.L. GEHLOT, ACCOUNTANT MEMBER ITA NO. 172/AGRA/2012 ASSTT. YEAR : 2008-09 SHRI SUDHIR KUMAR SINGH, VS. INCOME-TAX OFFICER , 13, K.B. NAGAR, HEAD POST OFFICE, 1(2), AGRA. KHERIA MOD, AGRA. (PAN : AFBPS 2678 J) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI NITIN SHARMA, ADVOCATE. RESPONDENT BY : SHRI K.K. MISHRA, JR. D.R. DATE OF HEARING : 22.11.2012 DATE OF PRONOUNCEMENT OF ORDER : 30.11.2012 ORDER PER BHAVNESH SAINI, J.M.: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF LD. CIT(A)-1, AGRA DATED 30.11.2011 FOR THE ASSESSMENT YEAR 2008- 09, CHALLENGING THE ORDER U/S. 154 OF THE IT ACT. 2. THE LD. CIT(A) OBSERVED THAT IN THE RETURN OF IN COME, NO CLAIM WAS MADE BY THE ASSESSEE FOR DEDUCTION OF HOUSING LOAN INTEREST AND IT HAS ALSO BEEN FOUND THAT HIS RETURN OF INCOME WAS PROCESSED U/S. 143(1)(A) A ND, THEREFORE, THERE WAS NO OCCASION BEFORE THE AO FOR CONSIDERING THE CLAIM OF ASSESSEE FOR DEDUCTION OF HOUSING LOAN INTEREST. LATER ON, THE ASSESSEE MADE SUCH CLAIM BY FILING THE ITA NO. 172/AGRA/2012 2 APPLICATION U/S. 154 , BUT THE AO REJECTED HIS APPL ICATION AFTER FINDING THAT SUCH CLAIM OF DEDUCTION OF INTEREST WAS NOT MADE IN THE RETURN OF INCOME, HENCE, THERE WAS NO MISTAKE APPARENT FROM THE RECORD WHILE PROCE SSING THE RETURN U/S. 143(1)(A) OF THE IT ACT. THE LD. CIT(A) AGREED WITH THE ORDE R OF THE AO U/S. 154 BECAUSE THERE WAS NO MISTAKE IN THE ORDER OF THE AO AS NO C LAIM OF DEDUCTION OF HOUSING LOAN INTEREST WAS MADE IN THE RETURN OF INCOME. THE LD. CIT(A) FURTHER NOTED THAT IF ASSESSEE HAS NOTICED ANY MISTAKE IN HIS RETURN, COR RECT COURSE OF ACTION FOR HIM WAS TO FILE THE REVISED RETURN BY MAKING CLAIM OF DEDUC TION OF HOUSING INTEREST, BUT NO SUCH REVISED RETURN WAS FILED IN THIS CASE. THEREFO RE, THE ORDER OF THE AO U/S. 154 DATED 29.10.2010 WAS CONFIRMED AND THE APPEAL OF TH E ASSESSEE HAS BEEN DISMISSED. 3. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THOUGH THE ASSESSEE HAS SHOWN NET INCOME AT RS.4,14,270/- IN THE RETURN OF INCOME, BUT IN SCHEDULE-E, THE ASSESSEE HAS CLAIMED EXEMPT INCOME ON ACCOUNT OF IN TEREST OF RS.1,50,000/-. THEREFORE, IT WAS A MISTAKE ON RECORD OF THE AO AND THE ASSESSEE SHOULD BE GIVEN BENEFIT OF DEDUCTION OF RS.1,50,000/- WHILE PROCESS ING THE RETURN OF INCOME U/S. 143(1)(A) OF THE IT ACT. ON THE OTHER HAND, THE LD. DR RELIED UPON THE ORDERS OF THE AUTHORITIES BELOW. ITA NO. 172/AGRA/2012 3 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. SECTIO N 143(1)(A) PROVIDES THAT WHERE THE RETURN HAS BEEN MADE U/S. 139 OR IN RESPO NSE TO A NOTICE U/S. 142(1), SUCH RETURN SHALL BE PROCESSED IN THE FOLLOWING MANNER : (A). TOTAL INCOME OR LOSS SHALL BE COMPUTED AFTER M AKING FOLLOWING ADJUSTMENTS : (I). ANY ARITHMETICAL ERROR IN THE RETURN; (II). THE INCORRECT CLAIM, IF SUCH INCORRECT CLAIM IS APPARENT FROM ANY INFORMATION IN THE RETURN. 4.1 THE ASSESSEE ADMITTEDLY, FILED THE RETURN OF IN COME FOR THE ASSESSMENT YEAR UNDER APPEAL SHOWING TOTAL NET INCOME AT RS.4,14,27 0/- AND THE COMPUTATION OF INCOME IS VERIFIED BY THE ASSESSEE BY APPENDING HIS SIGNATURE TO SUCH STATEMENT. THE AO PROCESSED THIS RETURN OF INCOME U/S. 143(1) ACCEPTING THE RETURNED TOTAL INCOME AT RS.4,14,270/-. AS PER THE ABOVE PROVISION S CONTAINED U/S. 143(1)(A), IT IS MANDATORY FOR THE AO TO PROCESS THE RETURN OF INCOM E AS IT IS AT THE INCOME DECLARED BY THE ASSESSEE. THERE WAS NO ARITHMETICAL ERROR IN THE RETURN OF INCOME AND NO INCORRECT CLAIM HAS BEEN MADE. WHAT THE ASSE SSEE HAS MADE A CLAIM IN APPLICATION U/S. 154 OF THE ACT IS THAT THE INCOME OF THE ASSESSEE SHOULD BE REVISED BY ALLOWING DEDUCTION OF RS.1,50,000/- ON ACCOUNT O F INTEREST ON HOUSING LOAN. THE ASSESSEE, HOWEVER, DID NOT MAKE ANY SUCH CLAIM OF D EDUCTION IN THE RETURN OF INCOME AND THE CLAIM OF DEDUCTION HAS BEEN MADE FOR THE FIRST TIME IN APPLICATION U/S. 154 OF THE IT ACT. IN SCHEDULE-E OF THE RETURN , THE ASSESSEE HAS NOT CLARIFIED WHETHER THE ASSESSEE MADE A CLAIM OF DEDUCTION ON A CCOUNT OF INTEREST ON HOUSING ITA NO. 172/AGRA/2012 4 LOAN. THEREFORE, IT IS NOT THE DUTY OF THE AO TO PR OBE THE FACTS FROM THE RETURN OF INCOME WHILE PROCESSING THE RETURN OF INCOME U/S. 1 43(1). SINCE, NO CLAIM OF DEDUCTION OF INTEREST ON HOUSING LOAN HAS BEEN MADE IN THE RETURN OF INCOME AND AO ACCEPTED THE RETURN OF INCOME FILED BY THE ASSES SEE AS IT IS, THEREFORE, THERE WAS NO MISTAKE APPARENT ON RECORD OF THE REVENUE DEPART MENT. THUS, RECTIFICATION APPLICATION U/S. 154 WAS NOT MAINTAINABLE IN THE PR ESENT FORM. IT APPEARS TO BE A MISTAKE COMMITTED BY THE ASSESSEE IN FILING THE RET URN OF INCOME, FOR WHICH THE ASSESSEE HAS BEEN PROVIDED REMEDY BY FILING THE REV ISED RETURN, BUT THE ASSESSEE DID NOT TAKE ANY SUCH STEP IN THE MATTER. WE, THEREFORE , DO NOT FIND ANY JUSTIFICATION TO INTERFERE WITH THE ORDER OF THE LD. CIT(A). THE APP EAL OF THE ASSESSEE HAS NO MERIT AND IS ACCORDINGLY DISMISSED. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DIS MISSED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (A.L. GEHLOT) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER *AKS/- COPY OF THE ORDER FORWARDED TO : 1. APPELLANT 2. RESPONDENT 3. CIT(A), CONCERNED BY ORDER 4. CIT, CONCERNED 5. DR, ITAT, AGRA 6. GUARD FILE SR. PRIVATE SECRETARY TRUE COPY