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TMI Blog2024 (4) TMI 649X X X X Extracts X X X X X X X X Extracts X X X X ..... r issuance of a Writ, Order or direction, more particularly one in the nature of Writ of Mandamus declaring the order dated 27.03.2023 bearing D.I.N. & Order No. ITBA/REC/S/154_12022- 23/105146975(1) passed by the 1st respondent under Section 154 r/w Section 143(3) of the Income Tax Act, 1961 for the Assessment Year 2016-17 (for short, 'the impugned order') as void, arbitrary, illegal, and in violation of Articles 14 and 265 of the Constitution of India, without jurisdiction and also in violation of principles of natural justice, and consequently to set aside the same. 2. Heard Mr. S. Ravi, learned Senior Counsel, appearing on behalf of Mr. Naga Deepak, learned counsel for the petitioner; and Mr. K. Aroah, learned Standing Counsel, appeari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l of the scheme of amalgamation, the said M/s. Apollo Bangalore Cradle Limited stood dissolved w.e.f. 01.04.2022. However, the petitioners were surprised to find the above impugned order dated 27.03.2023 having been passed by the 1st respondent abruptly under Section 154 read with Section 143(3) of the Income Tax Act, 1961 (for short, 'the Act'). It is this order dated 27.03.2023 which is under challenge in the instant writ petition. 4. Petitioner herein has questioned the said impugned order on various grounds, i.e., firstly, the same being in violation of the principles of natural justice; secondly, it being violative of the statutory provision; and thirdly, the impugned order being barred by limitation. Further, it is contended by the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tioner's firm is concerned. As a consequence of the disallowance of carrying forward of the loss to the tune of Rs. 2,60,98,369/-, the petitioner herein would be deprived and denied to carry forward the said loss of the previous year into the Books of Account of the next financial year. Thus, the said action on the part of 1st respondent has an adverse bearing and impact so far as the interest of the petitioner is concerned. 8. It is in this context that Sub-Section (3) of Section 154 has to be read which clearly envisages that in the event of effect of rectification resulting in an enhancement of assessment, reducing a refund, increasing the liability of the assessee, it is incumbent upon the respondent-Department for issuance of a notice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot get attracted. 10. Now for proper understanding of the dispute it would also be relevant at this juncture to take note of the provisions to Sub-Sections 1, 2 and 3 of Section 154 of the Act, which for ready reference, they are reproduced as under : "154. Rectification of mistake : -- (1) With a view to rectifying any mistake apparent from the record an income-tax authority referred to in Section 116 may, -- (a) amend any order passed by it under the provisions of the Act; (b) amend any intimation or deemed intimation under sub-section (1) of Section 143; (c) amend any intimation under sub-section (1) of Section 200A; (d) amend any intimation under sub-section (1) of Section 206CB; (1A) Where any matter has been consi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the rectification can be carried out. Further, when we read Sub-Section (3) of Section 154 of the Act in continuation, it would clearly give an indication of the rectification to be done only after a reasonable opportunity of hearing being provided to the assessee. 12. Taking into consideration the submissions made by the learned Senior Standing Counsel, appearing for the Income Tax Department, for the respondents, it would be relevant at this juncture to take note of the contents of the counter-affidavit filed by the 1st respondent, relevant portion of which is reproduced as under: "12. In reply to the averments made in para no.9 of the writ petition, it is submitted that the respondent No. 1 passed the rectification order u/s 154 with ..... X X X X Extracts X X X X X X X X Extracts X X X X
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