2019 (3) TMI 1198 - AT - Income Tax

Appeal Dismissed for Late Rectification Application under IT Act

The ITAT dismissed the appeal for Assessment Year 2008-09, affirming the CIT(A)'s decision that the rectification application was time-barred under ... Maintainability of rectification application filed beyond the period specified and mandated under section 154(7) - Intimation was processed under section 143(1)- non-grant of TDS credit as per Form No.16 issued by his employer, Government of Karnataka - no amendment / rectification shall be made after the expiry of 4 years from the end of the financial year in which the order sought to be amended was passed - HELD THAT:- In the case on hand, as rightly pointed out by the CIT(A), the assessee ought to have filed the said rectification application under section 154 of the Act on or before 31.03.2014. However, in the case on hand, the assessee has admittedly filed a rectification application on 18.03.2017; which is barred by limitation being filed belatedly with a delay of almost three years. All the averments to the contrary put forth by the assessee / learned AR, as to what the AO / CIT(A) ought to have done / not done etc., does not come to the assessee’s rescue as the assessee has not been able to establish the basic requirement; i.e., that its rectification application dated 18.03.2017 before the AO was maintainable as per the relevant mandate of the provisions of section 154(7). With due respect, as perused the judicial pronouncements cited are rendered in contexts that are different from the issue of dispute in the case on hand i.e., whether the assessee’s rectification application dated 18.03.2017; filed belatedly by almost three years beyond 31.03.2014, as per mandate of section 154(7) of the Act; is maintainable. In view of the facts and circumstances of the case and the relevant provisions of section 154 we find no cause to interfere with or differ from the finding rendered by the CIT(A) - Decided against assessee. Issues:1. Maintainability of appeal order passed by CIT(A) under section 250 of the Income Tax Act.2. Justification of rectification application filed by the appellant for Assessment Year 2008-09 under section 154 of the IT Act.3. Correctness of understanding by CIT(A) regarding the limitation of rectification application.4. Discrepancy in tax credit allowed by assessing authority and TDS certificate furnished by the appellant.5. Rejection of rectification request by assessing authority on the ground of limitation.6. Discrepancy in dates of assessment order passed by assessing authority and CIT(A).7. Legality of claim for income tax credit by the appellant.8. Excessive and arbitrary levy of tax and interest.Analysis:1. The appeal by the assessee challenged the order of CIT(A)-3, Bangalore for Assessment Year 2008-09. The appellant contended that the appeal order passed by CIT(A) was not maintainable under the law.2. The appellant filed a rectification application under section 154 of the IT Act, which was disposed of by the Assessing Officer. The appellant argued that the assessing authority contradicted the findings of CIT(A) by allowing additional tax credit, which was denied to the appellant without reason.3. The appellant disputed the understanding of CIT(A) regarding the limitation of the rectification application and argued that the claim for tax credit was legally justified.4. The main contention was the discrepancy between the tax credit allowed by the assessing authority and the TDS certificate furnished by the appellant, leading to the rejection of the rectification request on the ground of limitation.5. The assessing authority rejected the rectification request citing limitation, which the appellant claimed was not the basis for preferring the appeal before CIT(A).6. There was a discrepancy in the dates of assessment orders passed by the assessing authority and CIT(A), which the appellant argued was not resolved before delivering the judgment.7. The appellant sought justice from the Tribunal to set aside the order of CIT(A) and direct the assessing authority to allow the claimed income tax credit.8. The appellant also raised concerns about the excessive and arbitrary levy of tax and interest, seeking their deletion.In the final judgment, the ITAT dismissed the appeal for Assessment Year 2008-09, upholding the decision of CIT(A) that the rectification application filed by the appellant was barred by limitation under section 154(7) of the IT Act. The ITAT found no cause to interfere with the CIT(A)'s finding, stating that the rectification application filed almost three years beyond the prescribed time limit was not maintainable. The appellant was advised to seek recourse under other provisions of the Act on the issue.