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Tribunal Upholds Reduction in Deduction Disallowance to Rs. 37,16,384, Dismissing Appeals on Sec. 154 Rectification. The Tribunal dismissed the assessee's appeals, I.T.A.No.52 and 53/PAN./2024, and related stay applications, S.A.Nos.9 & 10/PAN./2024, regarding sec. 154 ...
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Tribunal Upholds Reduction in Deduction Disallowance to Rs. 37,16,384, Dismissing Appeals on Sec. 154 Rectification.
The Tribunal dismissed the assessee's appeals, I.T.A.No.52 and 53/PAN./2024, and related stay applications, S.A.Nos.9 & 10/PAN./2024, regarding sec. 154 rectification proceedings. The Tribunal upheld the lower authorities' decision to reduce the sec. 80P deduction disallowance to Rs. 37,16,384/-, finding no grounds for interference. The decision was pronounced on 19.06.2024.
Issues involved: The issues involved in the judgment are related to the assessment years 2020-2021 and 2021-2022, concerning the denial of sec. 80P deduction by the Assessing Officer and subsequent rectification proceedings u/s. 154 of the Income Tax Act, 1961.
Assessment of sec. 80P deduction: The Assessing Officer had initially denied the sec. 80P deduction of Rs. 3,77,60,800/- to the assessee in a sec. 143(3) r.w.s. 144B assessment. Subsequently, the assessee filed a rectification u/s. 154 seeking the same deduction. The Assessing Officer, in the rectification dated 30.03.2023, recalculated the disallowance on a "netting" basis, resulting in a reduced amount of Rs. 37,16,384/-. The National Faceless Appeal Centre affirmed this decision in the lower appellate discussion, leading to the assessee's dissatisfaction.
Judicial decision: After considering the arguments presented by both parties, the Tribunal found no grounds to interfere with the lower authorities' actions. The Tribunal emphasized that the purpose of a sec. 154 rectification is to correct apparent mistakes and not to conduct extensive inquiries, citing the case of T S Balram ITO vs. Volkart Bros. [1971] 82 ITR 50 (SC). Consequently, the Tribunal rejected the assessee's appeal and the corresponding stay application on the grounds of the maintainability of sec. 154 rectification proceedings.
Dismissal of appeals: The Tribunal issued a common order dismissing both of the assessee's appeals, namely I.T.A.No.52 and 53/ PAN./2024, along with their respective stay applications S.A.Nos.9 & 10/PAN./2024. The decision was based on the lack of grounds to interfere with the lower authorities' actions regarding the sec. 154 rectification proceedings. The order was pronounced in open court on 19.06.2024.
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