Case Law Details
Apex Tubes Pvt. Ltd. Vs ITO (ITAT Delhi)
The issue under consideration is whether rejecting the application under section 154 of the act of the assessee is justified in law?
In the present case, the assessee is constantly saying that there is an error in the value of fringe benefits shown by the assessee in the income tax return of income in part C computation of fringe benefits and fringe benefit tax. The total of four quarters is ₹ 287,6,308/– however the assessee has put a figure of total of fringe benefits as 5,09,560. Hence the assessee filed an application under section 154 for rectification but AO rejected the application stating this can’t be rectified.
ITAT states that, apparently the total of four quarters is only ₹ 2 876308/– however the assessee has also put a figure of total of fringe benefits as 509560. Therefore, apparently there is an error apparent from the record. Either the total of Rs 2876308/- is correct or actual value of total fringe benefits is ₹ 509560 is correct. Hence, there is an apparent error, which needs to be rectified. Naturally, there is an error in the return of income filed by the assessee apparently. Assessee cannot be asked to pay the tax on incorrect computation. He can be burdened with the tax liability only on the correct value of the fringe benefits. The assessee is saying that there is an error in input of figures of four quarters , which is the total of expenses and not the value of fringe benefit in those expenses. ITAT do not find any infirmity in the request of the assessee. Merely because assessee has inserted some figures, which are not in coherence with the other figures in the income tax return, there is a mistake apparent from the record, which needs to be rectified. Thus, the lower authorities are not justified in rejecting the application under section 154 of the act of the assessee. Hence, ITAT allow the appeal of the assessee.
FULL TEXT OF THE ITAT JUDGEMENT
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