2023 (8) TMI 959 - AT - Income Tax

Rectification u/s 154 - Addition u/s. 69 - AO observed that though the tax on the assessed income was to be computed as per the special tax rate of 30% as contemplated u/s. 115BBE the same inadvertently remained omitted to be done and was calculated as per the standard rates - HELD THAT - If the assessee's quantum appeal is decided in his favor at any stage, then the order passed by the A.O u/s. 154 of the Act as upheld by the CIT(Appeals) would fall to the ground and be rendered redundant. On the other hand, if the quantum appeal is decided against the assessee, then the order passed by the CIT(Appeals) confirming the A.O s order u/s. 154 of the Act would hold the ground. To sum up, we are unable to comprehend as to on what basis the disposing of the assessee s appeal against the order passed u/s. 154 of the Act by the CIT(Appeals) would prejudice the interest of the assessee. Thus, in terms of our observation above, finding no infirmity in disposing of the assessee s appeal against the order passed u/s. 154 by the CIT(Appeals), we uphold his order. Thus, the Ground of appeal No.1 raised by the assessee is dismissed in terms of our observations above. Apropos, the contention of the Ld. AR that the A.O. had grossly erred in issuing notice u/s. 154 of the Act after seeking approval of the Addl. CIT, Range-Korba, we find no substance in the same. On a specific query by the Bench about restriction placed upon an A.O. in seeking instruction/guidelines from the Addl. CIT either at the initiation stage or while passing an order u/s 154 of the Act, the Ld. AR failed to come forth with any reply. On a perusal of Section 154 of the Act, it transpires that the same therein contemplates that the income tax authority referred to in Section 116 may, to rectify any mistake apparent from the record, inter alia, amend any order passed by it under the provision of the Act. Nothing is discernible therefrom, which jeopardizes the power of the A.O. in rectifying mistakes apparent from the record after seeking any instruction/guidance from a superior authority. As the contention of the Ld. AR is devoid and bereft of any force of law; therefore, the same is dismissed. Thus, the Ground of appeal No.2 raised by the assessee is dismissed in terms of our observations above.

Summary

Issues involved:
The judgment involves issues related to the appeal against the order passed by the Commissioner of Income-Tax (Appeals), National Faceless Appeal Center (NFAC) and the assessment made under Sec. 143(3) of the Income-tax Act, 1961 for the assessment year 2015-16.

Issue 1: Disposal of appeal against order passed under Sec. 154 without deciding quantum appeal against order passed under Sec. 143(3):
The assessee contested that the Commissioner of Income-tax (Appeals) erred in deciding the appeal against the order passed under Sec. 154 without addressing the quantum appeal against the order passed under Sec. 143(3). The Tribunal found no substance in this argument, stating that the CIT(Appeals) could independently dispose of the appeal against the order passed under Sec. 154 without affecting the quantum appeal.

Issue 2: Validity of seeking approval for issuing notice under Sec. 154:
The assessee challenged the Assessing Officer's action of seeking approval from the Additional Commissioner of Income-tax, Range-Korba, for issuing a notice under Sec. 154. The Tribunal dismissed this contention, noting that there is no restriction on the AO to seek guidance from a superior authority while rectifying mistakes apparent from the record under Sec. 154.

Issue 3: Application of provisions of section 115BBE and total demand created:
The Assessing Officer applied the provisions of section 115BBE of the Income-tax Act, 1961, resulting in a total demand of Rs. 31,94,494. The Tribunal did not delve into this issue as the assessee did not present any arguments concerning it, leading to the dismissal of this ground.

General Grounds:
The Tribunal dismissed the general grounds of appeal, which were considered as not pressed by the authorized representative. The overall appeal of the assessee was ultimately dismissed based on the observations made by the Tribunal.

This judgment by the Appellate Tribunal ITAT Raipur addressed various issues raised by the assessee regarding the order passed under Sec. 154 and Sec. 143(3) of the Income-tax Act, 1961. The Tribunal provided detailed reasoning for each issue raised, ultimately leading to the dismissal of the appeal based on the observations and legal interpretations presented during the proceedings.