2015 (12) TMI 1416 - AT - Income Tax

Rectification of mistake - registration as per the provisions of Section 12AA granted w.e.f. 31.03.2003 by the Commissioner of Income Tax whereas the first day of the financial year would be 01.04.2002 as per assessee - whether order under Section 154 of the Act in respect of section 12AA of the Act was not included in the list of orders which are appealable, the appeal filed against the said order is not maintainable? - Held that - It is undisputed that the order of rectification to the order passed under Section 12AA of the Act is not in the list of the orders appealable to the Tribunal. The legislature has included the order passed under Section 154 amending the order under Section 263 of the Act, however, the order rectifying order under Section 12AA of the Act has not been included. It is the settled position of law that there is no inherent right of appeal to any assessee and the right of appeal is only statutory one. Therefore, unless the statute specifically provides for filing an appeal against a particular order, no right of appeal can be said to be conferred upon an assessee. See case of Pradeep Singh Vs. Deputy Commissioner of Income Tax 2005 (2) TMI 459 - ITAT DELHI-F . The appeal filed by the assessee against the order passed under Section 154 of the Act to the order under Section 12AA is not maintainable. However, the assessee may file an appeal against the order passed under Section 12AA of the Act by the Commissioner of Income Tax in compliance to the direction of the Tribunal with a request of condonation of delay, if so advised.

Summary

Issues:
1. Appeal against rejection of application under Section 154 by Commissioner of Income Tax (Exemptions)
2. Discrepancy in the date of registration granted under Section 12AA of the Income-tax Act
3. Maintainability of appeal against order passed under Section 154 in respect of Section 12AA of the Act

Analysis:

Issue 1:
The appeal was against the rejection of the application under Section 154 by the Commissioner of Income Tax (Exemptions). The appellant contended that the rejection was erroneous, lacked appreciation of facts, and violated principles of natural justice. However, the Commissioner's decision was based on the non-availability of relevant material during the hearing and the consideration of the ITAT direction and applicant's written submission. The Tribunal held that the appeal against the order passed under Section 154 was not maintainable as it was not included in the list of orders appealable to the Tribunal under Section 253 of the Act. The Tribunal cited legal precedents to support this position, emphasizing that the right of appeal is statutory, and unless specifically provided by the statute, no appeal can be filed.

Issue 2:
The discrepancy in the date of registration granted under Section 12AA of the Income-tax Act was a crucial aspect of the case. The Tribunal noted that the registration was granted w.e.f. 31.03.2003, while the appellant argued it should have been from 01.04.2002. This discrepancy led the appellant to file a petition under Section 154 of the Act. However, the Commissioner of Income Tax (Exemption) rejected the petition, leading to the appeal. The Tribunal analyzed the legal provisions and observed that the rectification order in this context was not appealable to the Tribunal. The Tribunal highlighted the importance of specific statutory provisions for appeal rights and dismissed the appeal on this ground.

Issue 3:
The third issue revolved around the maintainability of the appeal against the order passed under Section 154 in respect of Section 12AA of the Act. The appellant argued that since the order under Section 12AA was appealable before the Tribunal, any rectification to that order should also be eligible for appeal. However, the Tribunal reiterated that the order of rectification under Section 154 in this context was not included in the list of appealable orders. Citing legal precedents and the statutory framework, the Tribunal concluded that the appeal against the order passed under Section 154 was not maintainable and advised the appellant to file an appeal against the original order under Section 12AA if desired.

In conclusion, the Tribunal dismissed the appeal as non-maintainable against the order passed under Section 154 in respect of Section 12AA of the Act, emphasizing the statutory limitations on appeal rights and the need for specific statutory provisions for appeal eligibility.