Prakash Khatri Vs PCIT (ITAT Ahmedabad)
ITAT Ahmedabad held that incorrect calculation of income is liable to be rectifiable under section 154 of the Income Tax Act and not by invoking Revision proceeding u/s. 263 of the Act. Thus the Revision order passed by Ld. PCIT is hereby liable to be quashed.
Facts- The assessee is an individual engaged in the business of land trading. For the Asst. Year 2019-20, Assessee filed his Return of Income on 30-09-2019 declaring total income of Rs.23,49,930/- wherein salary income of Rs.25,34,930/, Long Term Capital Gain of Rs.11,46,723/- and Other Sources of Rs.19,542/-. The assessee claimed losses of current year of Rs.11,66,265/- and claiming the refund of Rs.20,58,130/-. During scrutiny assessment, the Assessing Officer made additions u/s. 68 of Rs.15,65,167/- and cash deposit of Rs.93,14,000/- and unsecured loan amounting to Rs.70,74,034/-and demanded tax thereon.
On verification of the assessment record, the Ld. PCIT found as per 26AS the assessee sold property of Rs.3,65,00,000/- during the year. However, the A.O. had taken only Rs.2,35,00,000/- while finalizing the assessment order which has resulted into escapement of Rs.1,30,00,000/- and also incorrect calculation of a sum of Rs.83,82,600/- towards cash deposit in bank account. Therefore the assessee was issued a show cause notice as to why not make an addition of Rs.2,13,82,6000/- and revise the assessment order.
