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 sections 154 and levy of interest under section 234A of the Income Tax Act, 1961 for the assessment year 2012-13. The Tribunal acknowledged the inconsistency in its previous order and deemed the initiation of proceedings under section 154 as invalid. Consequently, the Revenue's petition was allowed, leading to the rectification of the order on September 7, 2021.

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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.

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