TaxTMI 
TaxTMI 
2025 (8) TMI 1377
X X X X Extracts X X X X
X X X X Extracts X X X X
....s of Rs. 90,79,250 to the total income of the Appellant, made by Learned Centralized Processing Centre, Income Tax Department, Bengaluru (Ld. CPC) vide rectification order under section 154 of the Act dated 24 September 20. ('Rectification Order'), without providing adequate opportunity of being heard. The Appellant prays that the order passed by the Ld. CIT(A) is in violation of principles of natural justice and thus, had in law and ought to be quashed. Ground 2 On the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in dismissing the appeal instead of adjudicating the case on its merits by stating that in the assessment order dated 22 September 2022, passed under section 143(3) of the Act, the Assessing Officer upheld the Rectification Order, without appreciating that the assessment order did not adjudicate the additions made by the Ld. CPC. The Appellant prays that the impugned order passed by the Ld. CIT(A) is bad in law and ought to be quashed. Ground 3 On the facts and circumstances of the case and in law, the Ld. CIT(A) erred in not holding that the Rectification Order is bad in law in so far as it may ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d as deduction on payment basis under section 43B of the Act. Ground 10 Without prejudice to Ground 4, on the facts and circumstances of the case and in law, the Ld. it IA) erred in upholding the action of Ld. CPC in disallowing an amount Rs. 11,711 pertaining to interest paid on TDs twice in the Rectification Order. Other Grounds Ground 11 On the fact and circumstances of the case and in law, the Dl. CIT(A) has erred in not directing the Ld. CPC to grant applicable interest on income-tax refund under section 244A of the IT Act to the Appellant. The Appellant craves leave to add. to amend, to alter. to substitute and to withdraw the above grounds of appeal at any stagy of the proceedings." 2. The brief facts in this case are that the assessee had filed its return of income for A.Y.2020-21 on 28.01.2021, declaring total income of Rs. 14,16,17,380/-. Thereafter, a suo-motto order of rectification u/s. 154 of the Act was issued by the CPC/A.O on 24.09.2021, wherein certain upward adjustments were made to the income of the assessee which as stated by the Ld. Counsel are on account of mismatch in tax audit and income tax return fi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the AY 2020-21 has been passed on 22.09.2022 and the AO has upheld the rectification order u/s. 154 of the Act dated 24/09/2021 passed by the CPC. Keeping in view of the above factual position, the appeal of the appellant is dismissed." 4. The appeal of the assessee has been dismissed by the Ld. CIT(Appeals)/NFAC observing that scrutiny assessment u/s 143(3) of the Act for the AY 2020-21 has been passed on 22.09.2022 and the AO has upheld the rectification order u/s. 154 of the Act dated 24/09/2021 passed by the CPC, therefore, the appeal of the assessee could not be sustained. 5. Aggrieved with the order of the Ld. CIT(Appeals)/NFAC, the assessee carried the matter in appeal before us, wherein referring to Ground of appeal No.4 & No. 5 of the present appeal, the Ld. Counsel raised a controversy that whether the CPC/A.O is empowered to make adjustments by way of rectification order, which are outside the purview of Section 154 of the Act. Also the adjustment was made without issuing any notice to the assessee, which is mandatory as per the provisions of Act and also following the principle of natural justice. Before proceeding any further, we deem it fit to cull out ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....endment has the effect of reducing the assessment, the [Assessing Officer] [ Substituted by Act 4 of 1988, Section 2, for " Income-tax Officer" (w.e.f. 1.4.1988).] shall make any refund which may be due to such assessee. (6) Where any such amendment has the effect of enhancing the assessment or reducing a refund already made, the [Assessing Officer] [Substituted by Act 4 of 1988, Section 2, for " Income-tax Officer" (w.e.f. 1.4.1988).] shall serve on the assessee a notice of demand in the prescribed form specifying the sum payable, and such notice of demand shall be deemed to be issued under section 156 and the provisions of this Act shall apply accordingly. (7) Save as otherwise provided in section 155 or sub-section (4) of section 186, no amendment under this section shall be made after the expiry of four years [from the end of the financial year in which the order sought to be amended was passed] [ Substituted by Act 67 of 1984, Section 29, for " from the date of the order sought to be amended" (w.e.f. 1.10.1984).]. (8) [Without prejudice to the provisions of sub-section (7), where an application for amendment under this section is made by the assessee....