The Income Tax Appellate Tribunal held that the rectification ...

Income Tax Rectification Order Quashed for Lack of Natural Justice and Time Bar.

Case Laws     Income Tax

August 16, 2024

The Income Tax Appellate Tribunal held that the rectification order u/s 154 was invalid due to violation of principles of natural justice, contravention of Section 154(3) provisions, and being barred by limitation. Crucial findings: No evidence of serving notice u/s 154 dated 01.12.2015 to the assessee, violating natural justice by not providing opportunity of being heard. Unexplained inordinate delay of 3 months in serving the rectification order dated 19.03.2018, despite promptly serving the original order u/s 143(3). Absence of evidence establishing the actual passing of order on 19.03.2018, with the ITD database indicating the date as 01.06.2018, rendering it time-barred. Consequently, the Assessing Officer's rectification order u/s 154 was cancelled, and the assessee's appeal was allowed.

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