Surajit Ghosh Vs ITO (ITAT Kolkata)
Summary: The Kolkata Bench of the Income Tax Appellate Tribunal considered whether an inadvertent error committed by the assessee while filing the return of income could be rectified under Section 154 of the Income-tax Act. The assessee had mistakenly selected the acquisition period of certain mutual fund units as “on or after 31.01.2018” instead of “on or before 31.01.2018” in Schedule 112A, resulting in incorrect computation of long-term capital gains and a tax demand. The Assessing Officer rejected the rectification application on the ground that the proposed correction would alter the total income and required filing of a revised return. The appellate authority upheld this view. However, the Tribunal observed that the term “record” under Section 154 extends beyond the assessment order and includes all relevant records available with the tax authorities. Since evidence showed that the assets had been acquired before 31.01.2018, the Tribunal held that the inadvertent error constituted a mistake apparent from the record. The matter was remanded to the Assessing Officer to verify the evidence and recompute the capital gains accordingly.
Core Issue: Whether an inadvertent error in the income tax return regarding the date of acquisition of mutual fund units, resulting in incorrect computation of long-term capital gains under section 112A, constitutes a mistake apparent from the record capable of rectification under section 154.
