2021 (9) TMI 448 - AT - Income Tax

Appellate Tribunal rectifies order, deems initiation of proceedings invalid.

The Appellate Tribunal granted the Revenue's Miscellaneous Petition seeking rectification of an order dated 04.11.2019 concerning proceedings under ... Rectification of mistake u/s 154 - seeking rectification of the order [2019 (11) TMI 1674 - ITAT PUNE] of this Tribunal on the ground that the finding of the Tribunal that initiation of proceedings u/s 154 by the AO is valid and the finding of the Tribunal in upholding the power of Assessing Officer to levy of interest u/s 234A of the Act in the proceedings u/s 154 of the Act cannot co-exist - HELD THAT:- We find that the averment of the Revenue before us is correct. On mere reading of para 4 of the impugned order (supra), it would suggest that the tenor of order of Tribunal is not to uphold the validity of initiation of proceedings u/s 154 of the Act, the light of discoveries made by the Tribunal in the preceding para. Therefore, the word “valid” appearing in para 5 of the impugned order (supra) is substituted by word “invalid”. Present Miscellaneous Petition filed by the Revenue is allowed. Issues:Rectification of order dated 04.11.2019 regarding initiation of proceedings u/s 154 of the Income Tax Act, 1961 and levy of interest u/s 234A of the Act.Analysis:The Appellate Tribunal, in response to a Miscellaneous Petition by the Revenue, sought rectification of its order dated 04.11.2019 concerning the assessment year 2012-13. The Tribunal acknowledged the Revenue's contention that the finding on the initiation of proceedings u/s 154 and the power to levy interest u/s 234A could not co-exist in the same order. Upon reviewing the impugned order and the discussion in para 4, the Tribunal agreed with the Revenue's assertion. It noted that the tenor of the order did not support the validity of the initiation of proceedings u/s 154, considering the discoveries made earlier. Consequently, the Tribunal substituted the word 'valid' with 'invalid' in para 5 of the order, clarifying that the Assessing Officer's assumption of jurisdiction u/s 154 was deemed invalid. As a result, the Revenue's Miscellaneous Petition was allowed, leading to the rectification of the order.In conclusion, the Tribunal granted the Revenue's Miscellaneous Petition, thereby allowing the rectification sought by the Revenue. The order was pronounced on the 7th day of September 2021.