Rectification petition u/s 154 – 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.

Rectification petition u/s 154 – demand raised by the Ld AO under section 115WE – assessee value of fringe benefit tax shown is wrongly computed – HELD THAT:- 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

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.

Apparently there is an error apparent from the record. Either the total of ₹ 2876308/- is correct or actual value of total fringe benefits is ₹ 5 09560 is correct. Hence, there is an apparent error, which needs to be rectified. The central processing centre has taken the correct value of the fringe benefits automatically whereas it did not pay any heed to the figures mentioned of total fringe benefits of ₹ 5 09560. 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.

No 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 -direct the assessee to substantiate the correct figure for all the four quarters before the assessing officer, who is further directed to charge the correct fringe benefit tax payable by the assessee after proper verification – Decided in favour of assessee for statistical purposes.

 ITAT DELHI

APEX TUBES PVT LTD VERSUS ITO, WARD-3 (1) , NEW DELHI

ITA No. 7852/Del/2019 And SA No. 67/Del/2020 (In ITA No. 7852/Del/2019)