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2023 (6) TMI 970 - AT - Income TaxRectification u/s 154 - AO power to re-visit the order passed by the Tribunal or/Ld.CIT(A) - Once the appeal of the assessee against quantum additions have attained finality upto the level of the Tribunal then question arises as to whether the AO can rectify the order passed by him on an issue which is highly debatable and after the order got a seal of approval from the Ld.CIT(A). HELD THAT - In our view, the answer is NO since in our considered opinion, it will amount to re-visiting the order of the assessment, which has attained finality. Recently, in the identical facts, in the case of Shri Krishna Kumar D. Shah 2023 (5) TMI 1208 - ITAT HYDERABAD the decision relied upon by the learned DR, we had examined the law on the subject and after examining the same, we have heed that the AO has no power to re-visit the order passed by the Tribunal or/Ld.CIT(A)
Issues Involved:
1. Finality of the Assessment Order 2. Jurisdiction of the Assessing Officer (AO) under Section 154 3. Applicability of Revised Return 4. Concealment of Material Particulars by Assessee Summary: 1. Finality of the Assessment Order: The Revenue filed an appeal against the order of the CIT(A) dated 01/08/2018 for the assessment year 2010-11. The learned DR argued that the AO's order had attained finality as the assessee had withdrawn their appeal for the same assessment year, and thus, the CIT(A) should not have granted relief under Section 154 of the Income Tax Act, 1961. The Tribunal noted that once the appeal against quantum additions had attained finality up to the Tribunal level, the AO could not rectify the order on a debatable issue, as it would amount to revisiting the settled order. 2. Jurisdiction of the Assessing Officer (AO) under Section 154: The Tribunal emphasized that Section 154 allows rectification of mistakes apparent from the record, which are obvious and patent and do not require a long process of reasoning. The Tribunal cited several judgments, including those from the Hon'ble Supreme Court, to support this interpretation. It concluded that the AO does not have the power to revisit an order passed by the Tribunal or CIT(A) under the guise of rectification. 3. Applicability of Revised Return: The CIT(A) had allowed the appeal of the assessee based on the revised return filed within the permissible time, which did not disclose the amount of Rs. 27.35 crores as income. The Tribunal, however, found that the AO and CIT(A) had already dealt with this issue, and the revised return could not be considered for rectification under Section 154 as it would unsettle the final assessment order. 4. Concealment of Material Particulars by Assessee: The learned DR contended that the assessee had concealed material particulars and failed to disclose the pending appeal against the 154 order of the CIT(A). The Tribunal observed that the assessee had declared additional income during search proceedings and filed a revised return. However, the Tribunal upheld the AO's decision to dismiss the rectification application, as the issue was not a mistake apparent from the record but a debatable point of law. Conclusion: The Tribunal allowed the appeal of the Revenue, stating that the AO was correct in not entertaining the rectification application filed by the assessee. The Tribunal emphasized that the finality of the assessment order should be maintained, and Section 154 should not be used to revisit settled issues. The appeal of the Revenue was allowed, and the order of the CIT(A) was set aside.
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