TaxTMI 
TaxTMI 
2025 (5) TMI 1951
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....n 154 read with section 143(3) of the Income-tax Act, 1961 ('the Act') dated 19 February 2021 is without jurisdiction as the said order was passed without providing an opportunity of being heard as required under section 154(3) of the Act which is in violation of principles of natural justice and thereby, liable to be quashed. 3. The Ld.DR opposed admitting of the aforesaid additional ground. However, we note that this is a legal issue and adjudication of the said ground is essential for rendering substantial justice and doesn't require any fresh investigation into the facts and the same is essentially a question of law. Therefore, we admit the additional ground by relying on the decision of the Hon'ble Supreme Court in the case of NTPC Ltd. v. CIT reported in [1998] 229 ITR 383 (SC). 4. The brief facts relating to the aforesaid additional ground of all the captioned assessment years are that the assessee had filed Income Tax Returns (ITRs) for captioned three (3) assessment years, which ITRs were later selected for scrutiny and assessment orders u/s. 143(3) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') was duly passed against the assessee. The AO lat....
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.... of Rs. 2,73,59,655/- and stated the mistake is apparent from record. 5. Aggrieved by the aforesaid action of the AO for the respective assessment years, the assessee preferred respective appeals before the Ld.CIT(A) who was pleased to confirm the action of the AO. Aggrieved, the assessee is before us and has raised the aforesaid additional ground for all the captioned assessment years. 6. Having heard both the parties and after perusal of the records, since the assessee is challenging the action of the AO passing the rectification order u/s. 154 of the Act, it would be gainful to reproduce relevant portion of the section 154 which reads as under: s.154. Rectification of mistake - s.154(1) With a view to rectifying any mistake apparent from the record an income-tax authority referred to in section 116 may, - (a) ........ (b) .......... (c) .......... (d) .......... (2) Subject to the other provisions of this section, the authority concerned- (a) may make an amendment under sub-section (1) of its own motion, and (b) shall make such amendment for rectifying any such mistake which has been brought to its notice by the assessee, [or by the deductor] [or by the colle....
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....------------------------------------------------------------------------------- Tel No: 044-28338494, e-mall: [email protected] F. No. AAACI2641E/ACIT/CC1(1)/2024-25 Date: 10:03.2025 To The Income Tax Officer. O/o CIT(DR)-1. A-Bench, ITAT, Chennai Sub: Details regarding opportunity extended to assessee before passing order u/s. 154 in case of M/s ILJIN AUTOMOTIVE PRIVATE LIMITED for A.Y. 2016-17, 2017-18 & 2018-19 Ref: Letter dated 10.03.2025 from The Income Tax Officer, O/o CIT(DR)-1, ABench, ITAT, Chennai. Vide above referred letter, the details of the notices issued u/s. 154(3) was asked in the case of M/s. ILJIN AUTOMOTIVE PRIVATE LIMITED for A.Y. 2016-17, 2017-18 & 2018-19. On examination of the available records, the details found are as under: AY Date of order u/s. 154 Date of notice u/s. 154 Delivery status 2016-17 19.02.2021 Can....
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....mand Report of the AO itself admits that the notice dated 09.11.2022 for AY 2018-19 was delivered to the assessee only on 25.11.2022, which was undisputedly after passing the rectification on 22.11.2022. So there is per-se violation of statutory procedure prescribed by statute as noted supra. Thus, we note that no notice was served upon the assessee before the rectification order was passed for AY 2016-17 & 2017-18 and even for AY 2018-19 and thus, department failed to demonstrate that assessee had been given reasonable opportunity of being heard by AO before he passed the impugned orders u/s. 154 of the Act. Thus, we find there is violation of statutory procedure prescribed by section 154 by the AO before he took the impugned action of rectifying the earlier order, which resulted in enhancing an assessment/reducing a refund/increase the liability of the assessee. Therefore, we can't countenance the action of the AO omitting to issue statutory notice u/s. 154(3) of the Act for AY 2016-17 & AY 2017-18 as well as the AO's failure to dispatch/deliver the notice for AY 2018-19 before passing the rectification order for all the captioned Assessment Years. For such a proposition, we rely....