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

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 the assessment year 2012-2013 under the Income Tax Act, 1961. The tribunal dismissed the assessee's appeal for the same assessment year due to the rejection of the rectification petition, allowing the taxpayer to pursue regular appeal proceedings instead.

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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.

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