2019 (5) TMI 188 - AT - Income Tax

Rectification u/s 154 - change in accounting policy - validity of revised return by the assessee - HELD THAT - Case file suggests that the Assessing Officer had himself accepted assessee s revised return dated 30.09.2011 as per sec. 143(3) order dated 14.12.2011. He had also issued the necessary questionnaire to the assessee to this effect making all the relevant queries on 17.10.2011 u/s 142(1) of the Act. All these crucial facts have gone unrebutted from the Revenue side during the course of hearing. We therefore hold that CIT(A) has rightly held in view of the various judicial precedents that it is not an error apparent on the case of record involved at Assessing Officer s behest. The Revenue fails in its various substantive grounds thereby.

Summary

Issues:
Appeal against Commissioner of Income Tax (Appeals) order for assessment year 2009-10 under Income Tax Act, 1961 - Delay in filing appeal - Rectification u/s 154 on change in accounting policy - Validity of revised return - Addition made by AO on provision of gratuity.

Analysis:
The appeal before the Appellate Tribunal ITAT Kolkata involved challenging the Commissioner of Income Tax (Appeals) order for the assessment year 2009-10 under the Income Tax Act, 1961. The appeal was against the order dated 13.10.2017 in proceedings u/s 154 of the Act. The Tribunal noted a three-day delay in filing the appeal, which was condoned after the appellant submitted a condonation petition. The case proceeded for adjudication on merits after the delay was condoned.

The substantive grounds raised by the Revenue in the appeal included contentions related to the rectification u/s 154 on the issue of change in accounting policy, the validity of the revised return filed by the assessee, and the addition made by the Assessing Officer on the provision of gratuity. The Departmental Representative argued that the Assessing Officer rightly invoked sec. 154 rectification proceedings and claimed that the revised return by the assessee was not admissible under the Act. However, the Tribunal found no merit in the Revenue's arguments, noting that the Assessing Officer had accepted the assessee's revised return and had issued relevant queries regarding it, which were not disputed by the Revenue during the hearing.

The Tribunal held that the Commissioner of Income Tax (Appeals) had correctly relied on various judicial precedents in determining that there was no error apparent on the case record as claimed by the Revenue. As a result, the Tribunal dismissed the Revenue's appeal, upholding the decision of the Commissioner of Income Tax (Appeals) and ruling against the Revenue's substantive grounds. The appeal was ultimately dismissed by the Tribunal, and the order was pronounced in open court on 30/04/2019.