The Income Tax Appellate Tribunal (ITAT) Ahmedabad bench rendered that the assessing officer revamp the order passed without acknowledging the TDS statement beneath Form 16 by enforcing section 154 of the income tax act, 1961 and ruled that the employer is obligated for the lower TDS deduction.
The taxpayer MarkandIndraprasad Bhatt shows the income of Rs 24,26,62,205 beneath the authority of the salary and capital gain income in the income return furnished u/s 139 of the act towards the year beneath consideration. The taxpayer after the specific duration of the time released that he has provided the salary income in ROI more than Rs. 5,32,603/- mistakenly which is over and above the actual salary income. Rs. 24,00,39,600 was the actual salary income (including prerequisite of Rs, 39,600) as evident from Form 16 and 26AS.
The taxpayer furnished the application u/s 154 of the act to revamp the glitches seen from the records on the basis of the income which was provided higher than the actual income.
The employers would have filed the information of the salary appears in form 16 and the information of TDS appears in Form 26AS was available to the department. Hence the department or the income tax as referred u/s 119 of the act can revamp the glitches.
A bench of Ms Suchitra Kamble, a Judicial Member, And Shri Waseem Ahmed, an accountant member revealed that the salary of the taxpayer which the employer has shown during filing the form 16 of the employee, is proof that the taxpayer would obtain the salary amount where TDS would get deducted when that shall not be recognized, the employer would be asked on the lower TDS deduction and deposit.
“The mistake could be rectified if the same is apparent from the record. The plain meaning of the word “apparent” is that it must be something that appears to be so exact and incapable of argument or debate. It, therefore, follows that a decision on a debatable point of law or fact or failure to apply the law to a set of facts, which remain to be investigated, cannot be corrected by way of rectification. A mistake apparent on the record must be an obvious and patent mistake and not something which can be established by a long drawn process of reasoning on points on which there may be conceivably two opinions; a decision on a debatable point of law is not a mistake apparent from the record,” the Tribunal said.
Recommended: Brief Details of Revised Format Form 16 (Salary TDS Certificate)
“Moreover, form 16 issued by the employer for a year is a very relevant document through which assessee file the return of income declaring income under the head salary, which has been ignored by the lower authorities,” the Tribunal said.
Permitting the appeal of the taxpayer, the Tribunal ruled that “The assessee has the opportunity to file revised return of income by following the provision of section 139(5) of the Income Tax, however, he lost the opportunity but that does not mean that the mistake made by the assessee cannot be corrected. As such the provisions of section 154 of the Act are applied for both i.e. for assessees well as income tax authority referred u/s 119 of the Act. Thus we hold that there is a mistake apparent from the record which needs to be rectified under the provisions of section 154 of the Act.”
