TaxTMI 
TaxTMI 
2022 (1) TMI 1047
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....rectification orders u/s.154 of the Income Tax Act, 1961 (hereinafter the 'Act'), in both the cases were framed by the DCIT, Corporate Circle 2(2), Chennai vide orders of even date 20.06.2016 for the assessment year 2010-11. 2. Since the issues in both the appeals are common and facts are identical, we will first take up ITA No.1028/Chny/2019 in the case of Shri P.S. Jagdish. The assessee has raised the following issues:- (i) Whether in the rectification proceedings u/s.154 of the Act, can the AO change the head of income from "Long Term Capital Gain - Non-indexed" (rate of tax 30%) to "Income from other Sources" (rate of tax 10%). (ii) Whether the AO can make rectification u/s.154 of the Act without issuing show cause notice and witho....
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....n petition before the jurisdictional AO vide petition dated 13.08.2014 requesting for giving credit for TDS of Rs. 42,75,145/- as against the claim of TDS allowed u/s.143(1) of the Act by CPC, Bengaluru of Rs. 14,62,550 /-. The assessee in his petition filed complete details in regard to credit of income as well as claim of TDS and TDS certificates in Form No.16A issued by HDFC and Citibank. The assessee vide letter dated 25.04.2016 reminded for passing of order u/s.154 of the Act, reminding AO of his application dated 13.08.2014. The AO passed rectification order on 20.06.2016 and considered the rectification petitions dated 13.08.2014 and 25.04.2016. The AO noted in his rectification order passed u/s.154 of the Act, that the CPC, Bengalur....
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....ecord of the AO as well as the CIT(A). Hence, there is no bar in admitting this ground. The ld.counsel for the assessee stated that this issue of admissibility of additional ground i.e., jurisdictional ground as regards to limitation is very much covered by various decisions of Hon'ble Supreme Court and Hon'ble Jurisdictional High Court. He particularly referred to the decision of Hon'ble Supreme Court in the case of National Thermal Power Co. Ltd. vs CIT, (1998) 229 ITR 383. When this fact was brought to the notice of ld.Senior Department Representative, Shri V. Sreenivasan, he could not controvert the above arguments made by the ld.counsel for the assessee. As we have noticed that this issue of limitation goes to the root of the matter an....
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....d.counsel for the assessee has made submissions that in case the petitioner wishes to file a rectification application in time and which is to clarify that he has made an application for further credit of TDS in time, as made in this case on 13.08.2014 as provided u/s.154(2)(b) of the Act, the application has to be disposed off even beyond the time limit referred in Circular No.73(F.No.245/13/71-A&PAC) dated 07.01.1972, the CBDT has dealt with such a situation and ordered u/s.119(2)(a) as follows: "In exercise of the powers conferred by clause (a) of sub-section (2) of section 119, the Central Board of Direct Taxes hereby orders that in all the cases where a valid application under clause (b) of sub-section (2) of section 154 had been fil....
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.... from the date of order sought to be rectified. Thus, the date of original order is the commencing point of limitation even if that order is in between these 4 years being subjected to a rectification on a later date, the commencing point of limitation remains the same date of the original order and not the later date of its subsequent rectification or subsequent application. This view is supported by the Hon'ble Jurisdictional High Court in the case of Kothari (Madras) Ltd., vs. AG(ITO), (1989) 177 ITR 538 Mad. In the present case before us there is no controversy about first order or second order but order under rectification is only the order passed by CPC, Bengaluru u/s.143(1) i.e., intimation or processing of return of income vide lett....
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....petition on 25.04.2016. The AO passed rectification order u/s.154 of the Act on 20.06.2016, in which the AO changed the head of income from "Long Term Capital Gain" to "Income from other Sources". The facts and circumstances are exactly identical to the above discussed case and in the given facts and circumstances, the assessee has raised additional ground that the rectification order passed by the AO dated 20.06.2016 in regard to processing of return of income by issuing intimation u/s.143(1) of the Act dated 29.03.2012 is barred by limitation. For this, the assessee has raised these two grounds: 1) The order u/s 154 (dt.20.06.2016) in so far as it relates to shifting of LTCG of Rs. 2,84,04,542/- admitted/assessed in the Intimation u/s.1....