Case Law Details
Vijayaraghavan Lakshmi Vs ACIT (ITAT Hyderabad)
ITAT Hyderabad held that when there was an apparent mistake in the order of the AO in accepting the returned income instead of substituting the same with the assessed income there was an apparent error rectifiable under section 154 of the Income Tax Act.
Facts- The assessee is an individual and is a professional interior decorator. The case was selected for scrutiny and the AO passed the order u/s. 143(3) on 06.12.2018 wherein he had made addition of Rs. 1,56,71,710/-.
Subsequently, a search and seizure operation u/s.132 of the I.T.Act, 1961 was carried out in case of the assessee. In response to notice u/s. 153A issued which was duly served on the assessee to file return of income for the impugned assessment year, the assessee did not file any return of income. However, in response to notice u/s. 143(2) and 142(1), the AR of the assessee appeared before the AO and filed relevant details. After due verification and examination of the seized/impounded material and information furnished by the assessee during assessment proceedings, the AO accepted the income originally returned.
Subsequently, the AO noted that the assessment was completed u/s. 143(3) for AY 2016-17 wherein the income was determined at Rs.2,32,42,684/- and demand of Rs.66,75,521/- was raised. AO, therefore, issued a notice u/s. 154 of the Act proposing to rectify the assessment. Since the assessee did not respond to the notice issued u/s. 154 of the Act, the AO in the order passed u/s. 154, determine the assessed income at Rs. 2,32,42,684/-.
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