Rectification application u/s 154 for typographical/ technical mistake acceptable

Poorvanchal Vikas Foundation Vs ITO (ITAT Varanasi)

Held that rectification application u/s 154, after ROI being processed u/s 143(1)(a), for any typographical/ technical mistake reflected higher income than real income should be accepted by AO to verify the correctness of the total income of assessee

Facts-

The assessee submitted that at the time of filing of return of income for those two assessment years, the assessee declared the income at Rs. 26,477/- and Rs. 27,792/-, respectively. However, for the reasons not known to the assessee, this amount has been taken by the computer as well as by CPC at Rs. 26,47,737/- and Rs. 27,79,249/-, respectively. It was only a typographical mistake or may be a technical error due to which the total income declared by the assessee was enhanced by 10 times. After the ROI were processed by CPC under section 143(1)(a), the assessee realized this mistake and filed the application under section 154 of the Income Tax Act for both the years on 28.02.2018 which were rejected by the Assessing Officer, vide order dated 19th January, 2020.

On the other hand, the learned DR has submitted that the return of income filed by the assessee was processed and accepted under section 143(1) of the Act and therefore, there is no mistake apparent on record which can be rectified by the Assessing Officer under section 154 of the Act.

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