TaxTMI 
TaxTMI 
2024 (3) TMI 1206
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....ged mistake committed by the Assessing Officer in the Assessment Order dated 23.01.2021. 2. The petitioner had filed a regular return under Section 139 of the Income Tax Act, 1961 on 04.03.2019 for Assessment Year 2018-19. A notice dated 28.09.2019 was thereafter issued to the petitioner under Section 143(2) read with Section 143(3A) and Section 143(3B) of the Income Tax Act, 1961. It was specifically stated that the said notice was being issued only for a limited scrutiny of "Agricultural Income" of the petitioner. The petitioner appears to have replied to the above notice. Thereafter, a scrutiny assessment order dated 23.01.2021 was passed under Section 143(3) of the Income Tax Act, 1961. 3. It is submitted that only information tha....
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.....2021 passed under Section 143(3) of the Income Tax Act, 1961. 5. That apart, it is submitted that power to rectify an order under Section 154 of the Income Tax Act, 1961, is confined only to "error apparent on the face on records" or when there were clerical mistakes. It is submitted that there is no error apparent on the face on records in the scrutiny Assessment Order under Section 143(3) of the Income Tax Act, 1961 on 23.01.2021. 6. The learned Counsel for the petitioner has placed reliance on the following decision of the Hon'ble Supreme Court:- i. T.S.Balaram, Income Tax Officer vs. Volkart Brothers, (1971) 82 ITR 50 (SC); ii. Commissioner of Income Tax vs. Hero Cycles (P) Ltd., (1997) 94 Taxman 271(SC). 7. ....
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....ned Nsotice under Section 154 of the Income Tax Act, 1961. 13. Under Sub-section 1(A) to Section 154 of the Income Tax Act, 1961, it is submitted that where any matter has been considered and decided in any proceeding by way of appeal or revision relating to an order referred to in sub-section (1), the authority passing such order may, under Sub-section 1(A) to Section 154 of the Income Tax Act, 1961 notwithstanding anything contained in any law for the time being in force, amend the order under that sub-section in relation to any matter other than the matter which has been so considered and decided. 14. I have considered the arguments advanced by the learned counsel for the petitioner and the learned counsel for the respondent. I hav....
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.... 23.01.2021 for the Assessment Year 2018-2019. The respondent seeks to alter the Assessment Order dated 23.01.2023 made under Section 143(3) of the Income Tax Act, 1961 by including those issues which were not expressly dealt earlier namely (i) Interest on Borrowing, (ii) Goods in Transit & (iii) Interest on account of Excess Refund of amounts. These items were not included in the Assessment Order dated 23.01.2021. 19. Section 154(1) of the Income Tax Act, 1961 reads as under:- "Rectification of Mistake:- 154.(1) With a view to rectifying any mistake apparent from the record, an income-tax authority referred to in section 116 may,- (a) amend any order passed by it under the provisions of this Act; (b) ....
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....the Income Tax Officer was competent to rectify an order passed under Section 35 of the Income Tax Act, 1961. 23. In the case of Commissioner of Income Tax vs. Hero Cycles (P) Ltd., (1997) 94 Taxman 271(SC), the Supreme Court held that the rectification under Section 154 of the Income Tax Act can only be made when glaring mistake of fact or law has been committed by the officer passing the order comes apparent from the record. The court held rectification is not possible if the question is debatable. The Court however held that the point which was not examined on fact or in law cannot be dealt as mistake apparent on the record. 24. In the case of Maharana Mills Private Limited vs. Income Tax Officer, [1959] 36 ITR 350 (SC), the Hon'bl....
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....stake apparent from the record of the assessments of the first respondent. 29. I have considered the arguments advanced by the learned counsel for the petitioner and the learned counsel for the respondent. 30. The meaning of the expression, "error apparent on the face of record" is wider than the expression "mistake apparent from the record". An Assessing Officer is not incompetent to invoke the jurisdiction under section 154 of the Income tax Act, 1961 if such officer had committed a glaring mistake of fact or law while passing the assessment order as held by the Hon'ble Supreme Court in Commissioner of Income Tax vs. Hero Cycles (P) Ltd., (1997) 94 Taxman 271(SC), referred to supra. 31. If an Assessing Officer had also failed to ....