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TMI Blog2024 (6) TMI 67X X X X Extracts X X X X X X X X Extracts X X X X ..... se to the assessee when the AO failed to dispose of any application filed under section 154 of the Act within the statutory time limit. Since the AO had failed to discharge his statutory duty in passing the order disposing the application filed under section 154 of the Act on 10.11.2014, therefore we are of the view that the assessee is justified in raising this issue before the Appellate Authority as this is the only recourse available to it. The law is very well settled that if there is a breach of a statutory obligation, then a person committed such breach cannot be permitted to take advantage of such situation, so as to prejudice the interest of the effected person. As per the Circular No.4 dated 20.06.2012, the CBDT has authorized its subordinates to make appropriate corrections in the figures of disputed arrear demands after due verification and reconciliation and examining the merits of the case by way of rectification, irrespective of the fact that the period of limitation of four years as provided u/s. 154(7) of the Act has elapsed. We are of the considered opinion that neither the assessee s application filed under section 154 of the Act on 10.11.2014 was disposed of nor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... far after scrutiny assessment and consequential appeal effects but also with the adjustments of its refunds against the net demands of partners. As per the appellant/assessee, the AO did not take pains to work outcorrect quantum of refund after proper working of (i) payable interest to it under section 244A of the Act and (ii) chargeable interest from it and from its partners on their net outstanding demand under section 220(2) of the Act. 3.2 Aggrieved with the quantum of refunds, the appellant/assessee filed an application under section 154 of the Act before the AO for refunds after proper working of interest under section 220(2) and 244A of the Act from on it and its partners and allowing credit of taxes paid by them as per the law, which was disposed of by the AO vide order dated 07.01.2011. The order dated 07.01.2011 passed under section 154 of the Act was challenged before the CIT(A), who disposed it vide order dated 04.01.2013 as under: - The entire issue is not a matter of appeal but the matter of verification and rectification by the Assessing Officer. The appellant is directed to submit the entire set of its contentions, in form of application u/s 154 before the Assessing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee.) is an appealable order u/s 246A of the Act. 5. The Ld. AR argued that the appellant/assessee had not have any say on the way in which any order is written by the AO. The Ld. AR further contended that how the application filed under section 154 of the Act before the AO on 10.11.2014 by the appellant/assessee be disposed of by any order predated to 10.11.2014. Hence, the order dated 07.01.2011 passed by the AO under section 154 of the Act as mentioned in the said communication/order dated 04.07.2020 could not address the application filed under section 154 of the Act on 10.11.2014. The Ld. AR also submitted that the reference of the order dated 10.01.2014 mentioned in para 5.1 of the impugned order of the CIT(A) was factually incorrect as no such order was ever passed by the AO. Further, it was contended that the said order dated 10.01.2014 could not address the issues raised by the appellant/assessee s application filed under section 154 of the Act on 10.11.2014. It was further submitted by the Ld. AR that the application filed under section 154 of the Act on 10.11.2014 in pursuance of the Ld. CIT(A) s order dated 04.01.2013 was nothing but a request for giving effect, as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lant/assessee had moved an application under section 154 of the Act on 10.11.2014 for the relevant AY. Undisputedly, the application under section 154 of the Act on 10.11.2014 is in accordance with the law and in pursuance of the Ld. CIT(A) s order dated 04.01.2013. 9. Section 154(8) of the Act provides that any application filed under section 154 of the Act shall be disposed of within the six months from the end of the month in which such application is received by the AO. Therefore, the issuance of an order disposing the application filed under section 154 of the Act is absolutely necessary. Since no order as per provisions of section 154(8) of the Act was ever passed by the AO, therefore, the appellant/assessee was not aware about the fate of its application filed under section 154 of the Act before the AO on 10.11.2014. When the fate of the same came to its notice vide the communication/order dated 04.7.2020 of the AO, then it filed the appeal before the CIT(A). The Act does not provide any recourse to the assessee when the AO failed to dispose of any application filed under section 154 of the Act within the statutory time limit. Since the AO had failed to discharge his statuto ..... X X X X Extracts X X X X X X X X Extracts X X X X
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