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2022 (9) TMI 1146 - AT - Income TaxRectification u/s 154 - error in the title of the order - assessment order in the name of company amalgamated - HELD THAT - In the case in hand, in the body of the assessment order the Ld.AO has taken cognizance of the fact of amalgamation of the assessee with International Hospital Ltd and that itself is sufficient for the purpose of assessment order indicating that the assessment has been completed keeping in mind the continuity of legal entity of assessee further into amalgamated company. In the impugned order u/s 154 also the ld AO has mentioned this fact that in the body of the order the fact of amalgamation was mentioned. Thus any error in the title of the order has to be considered to be a mistake apparent from the record and cannot be considered to be anything in the form redetermination of an issue. The fact that the error in mentioning the correct name of the Assessee in the assessment order was one of the ground of appeal pending before the ld CIT(A) does not take away inherent power of Ld. AO to correct the mistakes apparent from the record while exercising powers of section 154. There is no question of opportunity of hearing being required in such case. There is no error in the order of the Ld. AO and the ld CIT(A) in confirming the orders of the Ld. AO.
Issues:
Rectification u/s 154 of the Income Tax Act - Scope and Limitations Analysis: The appeals were filed by the Assessee companies against the orders dated 30.05.2019 of CIT(A)-34, New Delhi, challenging the orders dated 29.01.2019 passed u/s 154 of the Income Tax Act, 1961 by the ld AO, DCIT, Circle-12(2), New Delhi. The Assessee, M/s. Escorts Hospital and Research Centre Ltd, got merged with appellant International Hospital Ltd as per the scheme of amalgamation approved by the Hon'ble High Court of Punjab and Haryana. However, a mistake was made in the assessment order where the name of the Assessee was mentioned as M/s Escorts Hospital and Research Centre Limited instead of the amalgamated company. The Ld. AO rectified this mistake u/s 154 of the Act, which was challenged by the Assessee before the ld CIT(A). The Assessee contended that the scope of rectification u/s 154 is limited and the Ld. AO was trying to undo something that was already a ground of appeal pending before the ld CIT(A). On the other hand, the ld DR argued that there was no error in the impugned order. The bench, after considering the facts, opined that the error in the title of the assessment order was a clerical mistake and did not affect the merits of the case. The Ld. AO had acknowledged the amalgamation in the body of the assessment order, indicating that the assessment was completed with the continuity of the legal entity of the Assessee into the amalgamated company. The judgment highlighted that any error in the title of a judicial or quasi-judicial order is a defect of a clerical nature and does not signify any illegality in the decision-making process. It was emphasized that every judicial and quasi-judicial authority possesses inherent powers to correct such clerical errors. The bench concluded that the error in mentioning the correct name of the Assessee in the assessment order did not invalidate the Ld. AO's decision to rectify it u/s 154. It was ruled that no opportunity of hearing was required in such cases, and the orders of the Ld. AO and the ld CIT(A) were upheld. Ultimately, the grounds of appeal were deemed to have no substance, and both appeals were dismissed.
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