2022 (3) TMI 901

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.... 2. By filing this petition under Article 226 of Constitution of India, petitioner seeks the following reliefs: "...... Hon'ble Court may be pleased to issue a writ, order, or direction, more particularly one in the nature of Writ of Mandamus, declaring the action of 1st & 2nd respondents in not disposing of the rectification application dt.26.12.2019, filed u/s 154 of the Act vide Acknowledgment No.725891910011, after considering the information furnished on 23.12.2019 by the Petitioner herein, as illegal and arbitrary on the part of the 1st & 2nd respondents and consequently direct the respondents to dispose of the rectification application dt.26.12.2019 as expeditiously as possible and may pass such other order or orders the ....

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....3.12.2019 based on materials available on record. On the date of passing the assessment order, there appeared no response from the assessee in the Assessment Portal. Thus, the order was passed based on the materials on record. Accordingly, request for rectification under Section 154 of the Act was not considered and rejected. 6. It appears that there were a series of correspondence between the petitioner and first respondent. In the meanwhile, against the assessment order dated 23.12.2019, petitioner has preferred appeal before the Commissioner of Income Tax (Appeals), Hyderabad. Finally on 28.08.2021, first respondent passed an order under Section 154 read with Section 143 (3) of the Act. First respondent held that assessee (petitioner)....

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....led by Mr.J.V.Prasad, learned counsel enclosing therewith rectification order dated 29.11.2021 passed by the first respondent under Section 154 read with Section 143 (3) of the Act. The said order reads as under: RECTIFICATION ORDER Assessee, M/s M.S. Educational trust had filed its return for the assessment year 2017-2018 declaring total income of Rs. 2,29,43,540/-. The case was selected for the scrutiny and on completion of the assessment proceedings, the order under section 143(3) of the Income Tax Act, 1961 was passed on 23.12.2019. In the said assessment order the addition was made on following two grounds: 1. Unexplained Cash credit and addition under section 69 read with section 115BBE of the Income Tax Act, 1961....

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....ed Income after rectification Rs. 6,31,55,531 8. From a perusal of the above, it is seen that Assessing Officer has taken the view that disallowing 30% of the expenditure pertaining to salary, rent, contract and professional fee as per Section 40 (a) (ia) of the Act is a mistake apparent on the face of record. Accordingly, the same has been rectified. Insofar issue regarding unexplained cash credit and addition under Section 69 of the Act is concerned, first respondent referred to his order dated 28.08.2021 saying that this issue was disposed of by the aforesaid order; i.e not a mistake which can be rectified under Section 154 of the Act. 9. Learned counsel for the petitioner submits that order, dated 28.08.2021, does not provide a....