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TMI Blog2024 (9) TMI 1507X X X X Extracts X X X X X X X X Extracts X X X X ..... before passing of any order or prior to the communique dated 23.1.2023 came to be issued. For the foregoing reasons and findings, we find that once the department had allowed credit of TDS passed u/s 143(1) r.w.s. 154 of the Act realizing its mistake made in the Intimation, and the appeal filed by the assessee before Learned CIT(A) had become infructuous, neither there was any reason for issuance of letter dated 23.01.2023 by the same Assessing Officer, intimating the assessee that its grievance u/s 154 of the Act could not be accepted, and that the assessee could file the appeal against the order u/s 143(1) of the Act, particularly when the assessee had already filed an appeal on receipt of the Intimation, and same had become infructuous with the passing of the order dated 18.01.2023. Impugned order passed by Learned CIT(A) is hereby set aside. We hereby direct the Assessing Officer to give effect to this judgment, and his own order whereby the mistake made in the Intimation issued initially was rectified and the assessee was given credit of TDS. - Shri Rathod Kamlesh Jayantbhai, AM, And Shri Narinder Kumar, JM. For the Assessee : Shri Vikash Rajvanshi, C.A. For the Revenue : Sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the credit difference TDS of Rs. 14,30,745/- for the assessment year 2019- 20 was denied to the assessee, without affording any opportunity to the appellant of being heard. 6. When provisions of section 154 of the Act have been read together in Court, learned DR for the department has submitted that there is nothing in the correspondence dated 23.1.2023 to suggest that the assessee was heard or given an opportunity of being heard, before its issuance. 7. At this stage, relevant portion of section 154 of the Act needs to be reproduced for ready reference. Same reads 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 this Act;] (b) [ amend any intimation or deemed intimation under sub-section (1) of section 143.] [ Substituted by Act 27 of 1999, Section 65, for Clause (b) (w.e.f. 1.6.1999).] (c) amend any intimation under sub-section (1) of Section 200A;] (d) [ amend any intimation under sub-section (1) of section 206CB.] [Inserted by Finance Act, 2015 (No. 20 of 2015), dated 14.5.2015.] [(1-A) Where any matter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s section shall be made after the expiry of four years [from the end of the financial year in which the order sought to be amended was passed] [ Substituted by Act 67 of 1984, Section 29, for from the date of the order sought to be amended (w.e.f. 1.10.1984).]. (8) [Without prejudice to the provisions of sub-section (7), where an application for amendment under this section is made by the assessee on or after the 1st day of June, 2001 to an income-tax authority referred to in sub-section (1), the authority shall pass an order, within a period of six months from the end of the month in which the application is received by it,- (a) making the amendment; or (b) refusing to allow the claim.] 8. As noticed above, for the purpose of rectification of any mistake apparent from the record, income tax authorities referred to in section 116 may amend any intimation or any order, as specified under section 154 of the Act. Sub-section(3) of section 154 of the Act provides that a notice has to be given by the concerned income tax authorities to the assessee or the deductor or the collector in case of amendment, which has the effect reducing a refund etc. 9. Sub-section (4) of section 154 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Assessing Officer-ITO had allowed the rectification application moved u/s 154 of the Act thereby rectifying mistake in the intimation u/s 143(1) of the Act. The abovesaid submission of Learned AR for the assessee, when considered very carefully, goes to show that this is a case of violation of principle of natural justice in not having provided any opportunity of being heard to the assessee, particularly when five days back, vide order dated 18.01.2023 same Income Tax Officer had allowed credit of TDS of Rs. 14,49,047/-, thereby accepting the claim of the assessee. 14. Let s look at the matter from a different angle. 15. Feeling aggrieved by the intimation u/s 143(1) of the Act, the assessee had challenged the same by filing appeal before CIT(A) on 08.12.2022. Therein, by way of written submissions furnished before CIT(A), on behalf of the assessee-appellant, on ground No. 1 of appeal before Learned CIT(A), the assessee specifically alleged that the department had rectified mistake u/s 154/143(1) of the Act by giving TDS credit of Rs. 1,16,89,928/- ( Page No. 33 to 34 of the paper book therein) along with computation sheet ( Page No. 35 to 39 of the paper book therein). Therein, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion that any fresh order was passed after having taken up the rectification application once again, even though vide order dated 18.1.2023 rectification application moved by the assessee under section 154 of the Act, stood allowed. There is nothing in the letter dated 23.01.2023 to suggest that the assessee was given any opportunity of being heard for taking up of its rectification application u/s 154 of the Act once again, and before rejecting the same by way of any decision on merits. In the given situation, issuance of notice to the assessee was one of the essential requirements of section 154(3) of the Act to be complied with by the authority. At the cost of repetition, we mention that as submitted before us by Learned AR, no notice came to be issued by the ITO to the assessee for the purpose of any proceedings or before passing of any order or prior to the communique dated 23.1.2023 came to be issued. 18. For the foregoing reasons and findings, we find that once the department had allowed credit of TDS amounting of Rs. 14,49,047/- vide order dated 18.01.2023 passed u/s 143(1) r.w.s. 154 of the Act realizing its mistake made in the Intimation, and the appeal filed by the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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