The duty of tax authorities to assist taxpayers in claiming reliefs and benefits, and the erroneous rejection of rectification applications.

JUDGMENT :

1. The Court :- This appeal filed by the assessee under Section 260A of the Income Tax Act, 1961 (the Act) is directed against the order dated 5.1.2018 passed by the Income Tax Appellate Tribunal “A” Bench, Kolkata in Miscellaneous Application No. 205/Kol/2017 affirming the order dated 27th September, 2017 passed in Income Tax Appeal No. 1176/Kol/2017 by which the order passed by the Commissioner of Income Tax (Appeals) –22 Kolkata, [CIT(A)] dated 15th March, 2017 was affirmed, which order of the [CIT(A)] arose out of an order passed by the assessing officer namely Deputy Commissioner of Income Tax (International Taxation), Circle – 2 (1), Kolkata dated 28th January, 2016 for the assessment year 2012-13. The appeal was admitted on 3rd December, 2018 to decide the following substantial questions of law:-

“i. Whether the subject income could be taken to have accrued in India only for the reason that it was shown in the balance sheet of the assessee ?

ii. Whether the learned tribunal ought to have allowed the rectification application of the appellant for the assessment year 2012-13 based on the CBDT circular no.13 of 2017 ?”

2. We have heard Mr. Sukumar Bhattacharyya for the revenue and Mr. Tilak Mitra, learned Advocate for respondent.

3. The legal issue involved in the instant case is whether the income of the assessee could have been taken to have accrued in India only because it was mistakenly shown by the assessee to have accrued in India while filing the return of income on 11th January, 2013. Even in the said return the name of the employer of the assessee was shown as M/s. MSC Ship Management Hongkong Limited. Therefore, admittedly the assessee was employed outside the Indian Territory. The return was processed and an intimation under Section 143(1) dated 2nd March, 2013 was issued computing the tax liability at Rs.4,40,070/-. Thereafter, the assessee filed the application for rectification under Section 154 of the Act. The same was rejected by the assessing officer by communication dated 23rd July, 2014 on the ground that tax has been correctly computed on the income return by the assessee and a fresh claim of change of income is not liable under Section 154 as the same is not a mistake apparent from the record. Thereafter the assessee filed another petition before the Deputy Commissioner of Income Tax (International Taxation) Circle 2(1). On 27.7.2015 this petition was filed by the Chartered Accountant of the assessee stating that on perusal of the client’s record it was found that the assessee was an NRI during the period as he had to stay outside the Country due to his employment and he was outside the country for totally 210 days during the previous year relating to the assessment year 2012-13 and the income has been assessed without considering the assessee’s NRI status. Therefore, it was requested that necessary rectification be made under section 154 of the Act. This request was rejected by the Deputy Commissioner of Income Tax (International Taxation) by order dated 28th January, 2016 on the ground that there is no mistake which is apparent from the records that can be rectified.

4. Aggrieved by the same, the assessee preferred appeal before the [CIT(A)] contending that the assessing officer has erred in ignoring the revised return filed by the assessee on 15th July, 2014 which was duly acknowledged where the income earned by the assessee under the head ‘salary claimed’ was exempted under section 10(6)(viii) of the Act. Further, it was contended that the assessing officer has overlooked the response sheet wherein acknowledgement has been given for filing the revised return. The said appeal was dismissed by the order dated 15th March, 2017 and on perusal of the said order it shows that the [CIT(A)] devoted much attention to the scope of interference in an application filed under section 154 of the Act. We find that the merits of the matter has not been touched upon by the [CIT(A)]. Aggrieved by the same,