2023 (4) TMI 485 - AT - Income Tax

Tribunal rejects rectification petition to annul assessment addition, assessee can pursue regular appeal.

Pravin Shivji Patel Versus The Income Tax Officer, Ward – 9 (3), Pune.

The tribunal upheld the rejection of the assessee's sec.154 rectification petition seeking to annul an addition made during the sec.143(3) assessment for ... Rectification petition u/s 154 seeking to annul the addition made during the course of sec.143(3) - HELD THAT:- We hardly see any merit in assessee’s instant arguments vis-à-vis applicability of sec.154 rectification proceedings in principle. Hon’ble apex court’s landmark decision in TS Balram, ITO vs. Volkart Bros. [1971 (8) TMI 3 - SUPREME COURT] has settled the law long back that sec.154 rectification proceedings are not meant to enter in roving inquiries in the case records. We uphold the learned lower authorities identical action rejecting the assessee’s impugned sec.154 rectification with a rider that the taxpayer herein shall be very much at liberty to take recourse to regular appeal proceedings and the corresponding delay would stand condoned as he has been pursuing the instant sec.154 remedy based on an erroneous belief. Assessee appeal dismissed. Issues involved:The judgment involves the rejection of the assessee's sec.154 rectification petition seeking to annul an addition made during the course of sec.143(3) assessment for the assessment year 2012-2013 under the Income Tax Act, 1961.Rectification Petition Rejection:The assessee's rectification petition dated 15.12.2019 to annul the addition amount of Rs.8,52,266/- made during the sec.143(3) assessment dated 30.11.2019 was rejected by both the lower authorities. The counsel argued for rectification citing a mistake apparent on the face of the record. However, the tribunal found no merit in the arguments, referring to the precedent set by the Hon'ble apex court in TS Balram, ITO vs. Volkart Bros. [1971] 82 ITR 50 (SC), which established that sec.154 rectification proceedings are not for roving inquiries in case records. Consequently, the tribunal upheld the rejection of the rectification petition but allowed the taxpayer to pursue regular appeal proceedings, condoning any delay due to the erroneous belief in seeking sec.154 remedy.Dismissal of Appeal:The tribunal dismissed the assessee's appeal for the assessment year 2012-2013 in light of the rejection of the rectification petition. The order was pronounced in the Open Court on 11.04.2023.