2023 (4) TMI 744 - AT - Income Tax

Maintainability of Rectification application u/s 154 - Period of limitation - application for requesting allowances of depreciation which has been disallowed by CPC 5 - HELD THAT - As is discernible from the orders of the lower authorities the assessee had filed a rectification application u/s.154 on 31.01.2018 i.e. much after lapse of four years from the end of the financial year in which intimation u/s.143(1) of the Act dated 13.12.2010 was issued by the A.O. As the aforesaid application was filed by the assessee u/s.154 beyond the stipulated time period as provided in sub-section (7) of Section 154 of the Act, therefore, the same was rightly held by the A.O as not maintainable. No infirmity in the orders of the lower authorities who had rightly dismissed/sustained the dismissal of the application filed by the assessee u/s.154 of the Act uphold the same.

Summary

Issues involved: Appeal against order u/s 154 of the Income-tax Act, 1961 for A.Y. 2010-11.

Summary:

Issue 1: Validity of the order of the CIT(A)
The appellant challenged the order of the Commissioner of Income-Tax (Appeals) on the grounds that it was "bad in law and on facts." However, the appellant did not appear for the appeal hearing, leading to the Tribunal proceeding in accordance with Rule 24 of the Appellate Tribunal Rules, 1963.

Issue 2: Consideration of rectification application
The appellant had filed a rectification application u/s.154 of the Act seeking to rectify the disallowance of depreciation in the return of income for A.Y. 2010-11. The application was dismissed by the Assessing Officer (A.O) as it was filed beyond the prescribed time limit of four years from the end of the relevant financial year. The Tribunal upheld the dismissal, citing the provisions of sub-section (7) of Section 154 of the Act.

Conclusion:
The Tribunal upheld the dismissal of the rectification application filed by the appellant u/s.154 of the Act, as it was submitted beyond the permissible time limit. The appeal of the assessee was consequently dismissed based on these findings.