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TMI Blog2023 (9) TMI 424X X X X Extracts X X X X X X X X Extracts X X X X ..... nce between rectification of an order and revision of an order. The rectification of any mistake can only be passed in order to put something right. However, revision means, the changing of something in order to correct or improve it. Thus, in our view, any change in the order can only be done by invoking the powers of revision and not by passing order of rectification u/s 154 of the Act. Since in the present case no proceedings are pending before the CIT (A), therefore, the ld. CIT (A) was not right in passing order of rectification by directing to initiate the penalty proceedings under section 270A of the IT Act in place of penalty proceedings u/s 271AAC of the Act when admittedly vide her initial order dated 28.02.2022 has categorically held that addition made on account of alleged unaccounted sale under section 68 is totally unjustified and consequently not covered u/s 115BBE of the Act and there was no income chargeable to tax under section 115BBE. After culmination of proceedings, the ld. CIT (A) was not within jurisdiction to order initiation of penalty proceedings under section 270A of the IT Act by passing rectification order under section 154 of the Act as the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome of Rs. 1,06,49,890/- after making addition of Rs. 32,91,000/- on account of cash deposited during demonetization period treating it as undisclosed income of the assessee under section 68 and subjected the same to tax @ 60% under section 115BBE of the IT Act. The AO further made addition of Rs. 71,35,200/- under section 41(1) of the I.T. Act, 1961 holding that appellant failed to show genuineness of the amount shown as outstanding balance in respect of Rs. 55,95,750/- in the name of M/s. Raj Enterprises and of Rs. 15,39,450/- in the name of M/s. Nirat Gems and, therefore, considered the above outstanding balance as not payable by appellant and recorded as false liability in books of accounts and added the same back to total income of the appellant, vide his order dated 14.12.2019. Aggrieved by the order of the AO, the assessee preferred appeal before the ld. CIT (A)-4, Jaipur, who after considering the detailed submissions/evidences furnished by the assessee passed order dated 28.02.2022 thereby partly allowed the appeal of the assessee. 2.1 Subsequently, the AO issued notice to the assessee under section 271AAC(1) of the IT Act, 1961 on 22.02.2023 to levy penalty under sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave the jurisdiction or authority to issue any directions or pass orders in the case, The CIT(A) can only exercise the quasi-judicial powers when there is an appeal filed by the taxpayer against the assessment order is pending before him. If no proceedings are pending before the CIT(A) in a particular case, it would be beyond the jurisdiction of the CIT(A) to issue directions or pass orders in any case. The powers of CIT(A) are provided in section 251 of the IT Act, 1961. For ready reference and sake of convenience the said provisions are reproduced herein below:- (1) In disposing of an appeal, the [Commissioner (Appeals)] shall have the following powers (a) in an appeal against an order of assessment, he may confirm, reduce, enhance or annul the assessment (aa) in an appeal against the order of assessment in respect of which the proceeding before the Settlement Commission abates under section 245HA, he may, after taking into consideration all the material and other information produced by the assessee before, or the results of the inquiry held or evidence recorded by, the Settlement Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er sub-section (1) of section 206CB (1A) Where any matter has been considered and decided in any proceeding by way of appeal or revision relating to an order referred to in sub-section (1), the authority passing such order may notwithstanding anything contained in any law for the time being in force, amend the order under that sub-section in relation to any matter other than the matter which has been so considered and decided (2) Subject to the other provisions of this section, the authority concerned- (a) may make an amendment under sub-section (1) of its own motion, and (b) shall make such amendment for rectifying any such mistake which has been brought to its notice by the assessee or by the deductor or by the collector, and where the authority concerned is [the Joint Commissioner (Appeals) or the Commissioner (Appeals), by the Assessing Officer also It is therefore requested that order passed by Ld. CIT(A) u/s 154/250 of the IT Act, 1961 may kindly be cancelled including the direction issued by her for initiating the proceedings u/s 270A of the IT Act, 1961. 4. On the other hand, the ld. D/R supported the impugned order under section 154. 5. We ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 4,18,406/- sustained by ld. CIT (A) in the appeal order by applying GP rate of 26.63%. 5.4 On considering the entire factual and legal position, we find that the ld. CIT (A) has no power to issue the directions or pass order in a case where no proceedings are pending before him. As the ld. CIT (A) is a quasi judicial authority and exercises appellate jurisdiction over the orders passed by the AO. Therefore, the role of the ld. CIT (A) is to hear appeals filed against the order of the AO and determine whether the assessment order is correct or not. If there are no pending proceedings or appeals before the ld. CIT (A) then in that eventuality, then he would not have jurisdiction or authority to issue any directions or pass orders in the case. The ld. CIT (A) can only exercise the quasi judicial powers when there is an appeal filed by the tax payer against the assessment order is pending before him and in case no proceedings are pending before ld. CIT (A) in a particular case, then in that eventuality it would be beyond jurisdiction of the ld. CIT (A) to issue any directions or pass any orders in any case. The powers of ld. CIT (A) are specifically provided under the provisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld. CIT (A) for initiation of penalty proceedings under section 270A of the Act and in this regard order passed under section 154 of the Act is palpably wrong, invalid and bad in law and without jurisdiction. There is a difference between rectification of an order and revision of an order. The rectification of any mistake can only be passed in order to put something right. However, revision means, the changing of something in order to correct or improve it. Thus, in our view, any change in the order can only be done by invoking the powers of revision and not by passing order of rectification under section 154 of the Act. In this regard we draw strength from the decision of Hon ble Supreme Court in the case of CIT vs. Ralson Industries Ltd. (2007) 158 Taxman 160 (SC) wherein it has categorically been held that the scope and ambit of a proceeding for rectification of an order under section 154 and a proceeding for revision under section 263 are distinct and different. Order of rectification can be passed on certain contingencies. However, it does not confer a power of review. Reference is made to the judgment of Hon ble Gujarat High Court in the case of Gujarat State Seeds C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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