TaxTMI 
TaxTMI 
2022 (6) TMI 1566
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.... the appellant under the facts and circumstances of the case. 3. The learned Commissioner of Income-tax [Appeals] failed to appreciate that the when the issue is debatable then the provisions of section 154 of the Act is not available to the learned assessing officer and the learned assessing officer ought not to have passed an order of rectification under section 154 of the Act on the facts and circumstances of the case. 4. The learned Commissioner of Income-tax [Appeals] failed to appreciate that the learned assessing officer was not justified in applying maximum marginal rate concept under Section 167B of the Act as against the slab rates mentioned in the Part I of the First Schedule of the Finance Act, 2013, since the provisions of section 167B of the Act is not applicable to the appellant since the appellant is a society registered under the provisions of The Societies Registration Act, and consequently the said provisions of section 167B of the Act is not applicable to the case of the Appellant and consequently passed an erroneous order, on the facts and circumstances of the case. 5. The Appellant denies itself to be liable for the total tax payable....
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.... issue of mutuality is not apparently emanating from the impugned order u/s 154, the Assessee's primary contention in the present appeal is, on the grounds of the principle of mutuality claimed to be applicable to the appellant. The Assessee in its written submission has claimed non-taxability on basis of the principle of mutuality by placing reliance on certain judicial pronouncements. (ii) It is evident from the Assessee's appeal that, the issue has been examined by the AO in his order u/s 143(3) dated 28/02/2015 which is also reported to be pending in first appeal with CIT(A)-9, Bengaluru. The impugned disallowances have been made on grounds of non-mutuality in respect of the interest-receipts on Bank-deposits. The said issues being pending for appellate-decision could not therefore fall within the simultaneous purview of the present appeal against the order u/s 154. The order u/s 154 under consideration is only in respect of application of correct tax rates, as a consequential action to the AO's order u/s 143(3) dated 28/02/2015. (iii) The appellant remains at liberty to seek consequential rectification if any, arising from the final disposal. of t....
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....mum marginal rate, tax shall be charged on the total income of the association or body at such higher rate. (2) Where, in the case of an association of persons or body of individuals as aforesaid [not being a case falling under subsection (1)],- (i) the total income of any member thereof for the previous year (excluding his share from such association or body) exceeds the maximum amount which is not chargeable to tax in the case of that member under the Finance Act of the relevant year, tax shall be charged on the total income of the association or body at the maximum marginal rate; (ii) any member or members thereof is or are chargeable to tax at a rate or rates which is or are higher than the maximum marginal rate, tax shall be charged on that portion or portions of the total income of the association or body which is or are relatable to the share or shares of such member or members at such higher rate or rates, as the case may be, and the balance of the total income of the association or body shall be taxed at the maximum marginal rate. Explanation.- For the purposes of this section, the individual shares of the members of an association of pe....
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....for the advancement of substantial cause of justice. 17. Issue as regard to the jurisdictional aspect of the provisions of section 154 of the Act: (i) It is submitted that in order to invoke the provisions of Section 154, it is essential that the apparentness of a mistake from the record has to be considered and established objectively. If there is a mistake apparent from the record it ought to be capable of being demonstrated objectively. The determination of the apparentness subjectively by the authority concerned is not sufficient [CIT v. General Electric Co. of India Ltd., [1978] 112 ITR 246,255,256 [Cal]]. (ii). A mistake apparent on the record must be an obvious and patent mistake and not something which can be established by a long drawn process of reasoning on points on which there may be conceivably two opinions [CIT v. Gujarat State Export Corporation Ltd., [2005] 279 ITR 477 [Guj]] and as held in the decision of the Hon'ble Apex Court in the case of T.S. Balaram, Income-tax Officer Vs. Volkart Brothers, [1971] 82 ITR 50 [SC]. (iii) Therefore, the action of the learned assessing officer in passing the order under section 154 of the ....