Assessee received Excise duty of refund and Interest subsidy and offered the same as revenue receipts in return of income. Regular assessment completed after making addition of petty expenses. Assessee filed rectification application u/s. 154 to reduce Excise duty refund and Interest subsidy and to treat the same as capital receipt in view of the judgment of Jurisdictional J&K High Court in the case of Shree Balaji Alloys v.CIT (2011) 333 ITR 335 (J&K)(HC)) On appeal, ITAT held that CIT (A) was right in allowing the appeal of assessee by directing the AO to carry out necessary rectification. Section 154 has been enacted to enable the authorities to rectify the mistake whether the mistake is done by assessee or by AO. A liberal construction of the statute has to be made else the object of the legislation shall be forfeited. (AY. 2007-08)
DCIT v. Kashmir Steel Rolling Mills (2023) 104 ITR 684 (Amritsar) (Trib)
S. 154 : Rectification of mistake-Mistake apparent from the record-Capital or revenue-Excise duty refund and Interest subsidy as revenue receipts-Rectification application pursuant to jurisdictional High Court-Tribunal held that CIT(A) is right in directing AO to carry out necessary rectification. [S. 4]