TaxTMI 
TaxTMI 
2025 (5) TMI 1951
X X X X Extracts X X X X
X X X X Extracts X X X X
....ase and in law, the rectification order under section 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 'th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ppellant. Further, the AO has passed rectification order u/s 154 of the Act and denying MAT credit 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, a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ME TAX DEPARTMENT OFFICE OF THE ASSISTANT COMMISSIONER OF INCOME TAX CORPORATE CIRCLE-1 (1), ROOM NO. 611, WANAPARTHY BLOCK, 6TH FLOOR, #121, MAHATMA GANDHI ROAD, NUNGAMBAKKAM, CHENNAI-600 034 ---------------------------------------------------------------------------------------- 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....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed in the e-mail account of the assessee after three (3) days of passing of the rectification order. Though such a fact i.e. of receiving such a notice after three (3) days is contested by the assessee and the stand of the assessee is that it has not received any notice u/s. 154 of the Act for AY 2018-19, be that as it may, the Remand 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 a....