2023 (10) TMI 1278 - AT - Income Tax

Rectification u/s 154 of the intimation issued u/s 143(1)(a) - Deduction u/s 80P(2)(a)(i) denied - doctrine of merger - HELD THAT - Application as per the mandate of sub-section (1A) of Section 154 of the Act was in itself not maintainable for the reason, that as per the doctrine of merger, after the intimation issued u/s 143(1)(a), dated 07.06.2019, had been subjected to appeal before the CIT(Appeals), then, the right of the assessee to seek rectification u/s 154 before the A.O was confined to only such matter/matters other than that which had been considered and decided by the CIT(Appeals). As the issue in the present case, i.e., the entitlement of the assessee for claim of deduction u/s 80P(2)(a)(i) had already been considered and decided by the CIT(Appeals), therefore, the application thereafter filed by the assessee society u/s. 154, on the said count itself was not maintainable. Accordingly, the order passed by the A.O. declining the assessee s request for rectification vide his order u/s. 154 is approved in terms of our aforesaid observations.

Summary

Issues involved:
The judgment involves issues related to condonation of delay in filing an appeal, denial of deduction u/s 80P, and maintainability of rectification application u/s 154.

Condonation of delay:
The appeal filed by the assessee was found to be time-barred by 24 days. The assessee provided reasons for the delay, stating that engaging a new counsel and the time constraints of tax audit reports led to the delay. The Tribunal, after considering the reasons, condoned the delay as it was beyond the control of the assessee and not due to any deliberate conduct.

Denial of deduction u/s 80P:
The assessee, a Co-operative Society, had claimed deduction u/s 80P(2)(a)(i) in its return of income for A.Y. 2018-19, which was denied during processing u/s 143(1) of the Act. Despite the assessee's appeal against this denial being dismissed by the CIT(Appeals), the Tribunal upheld the denial of deduction u/s 80P(2)(a)(i) as the rectification application filed by the assessee u/s 154 was not maintainable due to the doctrine of merger. The Tribunal observed that once an issue has been considered and decided in an appeal, the right to seek rectification is limited to matters other than those already decided.

Maintainability of rectification application u/s 154:
The Tribunal held that the rectification application filed by the assessee u/s 154 seeking to rectify the denial of deduction u/s 80P(2)(a)(i) was not maintainable as the issue had already been considered and decided by the CIT(Appeals). The Tribunal referred to Section 154(1A) of the Act, which restricts the authority to amend an order under this section to matters other than those already considered and decided in an appeal or revision.

Conclusion:
The Tribunal dismissed the appeal of the assessee based on the above observations regarding the denial of deduction u/s 80P(2)(a)(i) and the maintainability of the rectification application u/s 154. The order of the Assessing Officer declining the rectification request was upheld by the Tribunal.