Step 1: Understanding the Concept
Planaria is a free-living flatworm. Its nervous system is the simplest central nervous system in the animal kingdom.
Step 2: Check the statements
Planaria is the most primitive animal with a CNS. Its brain is U-shaped. A pair of eye spots lies on the dorsal side of the brain.
Step 3: Find the wrong statement
Planaria belongs to phylum Platyhelminthes, not Aschelminthes (roundworms), so option (C) is incorrect.
Final Answer:
The incorrect statement is that Planaria belongs to phylum Aschelminthes.
\[ \boxed{\text{(C) }\text{It belongs to the phylum Aschelminthes.}} \]