ITAT Raipur Dismisses Assessee's Appeal on Income Tax Order | Sec. 154 & 143(3) Explained

The Appellate Tribunal ITAT Raipur dismissed the appeal by the assessee challenging the order passed under Sec. 154 and Sec. 143(3) of the Income-tax Act, 1961. The Tribunal held that the Commissioner of Income-tax (Appeals) could independently dispose of the appeal against the order passed under Sec. 154 without affecting the quantum appeal under Sec. 143(3). It also ruled that seeking approval for issuing notice under Sec. 154 from a superior authority is permissible. The application of provisions of section 115BBE and total demand created were not considered due to lack of arguments by the assessee. The general grounds of appeal were dismissed as not pressed by the authorized representative.

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Issues involved:
The judgment involves issues related to the appeal against the order passed by the Commissioner of Income-Tax (Appeals), National Faceless Appeal Center (NFAC) and the assessment made under Sec. 143(3) of the Income-tax Act, 1961 for the assessment year 2015-16.

Issue 1: Disposal of appeal against order passed under Sec. 154 without deciding quantum appeal against order passed under Sec. 143(3):
The assessee contested that the Commissioner of Income-tax (Appeals) erred in deciding the appeal against the order passed under Sec. 154 without addressing the quantum appeal against the order passed under Sec. 143(3). The Tribunal found no substance in this argument, stating that the CIT(Appeals) could independently dispose of the appeal against the order passed under Sec. 154 without affecting the quantum appeal.

Issue 2: Validity of seeking approval for issuing notice under Sec. 154:
The assessee challenged the Assessing Officer's action of seeking approval from the Additional Commissioner of Income-tax, Range-Korba, for issuing a notice under Sec. 154. The Tribunal dismissed this contention, noting that there is no restriction on the AO to seek guidance from a superior authority while rectifying mistakes apparent from the record under Sec. 154.

Issue 3: Application of provisions of section 115BBE and total demand created:
The Assessing Officer applied the provisions of section 115BBE of the Income-tax Act, 1961, resulting in a total demand of Rs. 31,94,494. The Tribunal did not delve into this issue as the assessee did not present any arguments concerning it, leading to the dismissal of this ground.

General Grounds:
The Tribunal dismissed the general grounds of appeal, which were considered as not pressed by the authorized representative. The overall appeal of the assessee was ultimately dismissed based on the observations made by the Tribunal.

This judgment by the Appellate Tribunal ITAT Raipur addressed various issues raised by the assessee regarding the order passed under Sec. 154 and Sec. 143(3) of the Income-tax Act, 1961. The Tribunal provided detailed reasoning for each issue raised, ultimately leading to the dismissal of the appeal based on the observations and legal interpretations presented during the proceedings.

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