TaxTMI 
TaxTMI 
2026 (7) TMI 1232
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....ven on this fact o jurisdictional high court's order brought to his notice in both the proceedings (i.e. sec. 147/143(3) & sec. 154). He himself mentions in his order that Anyhow the ground raised in the appeal by the appellant could have been looked into if the appeal was a against order u/s 147 r.w.s. 143(3). 2. New ground of appeal - Reassessment on the basis of change of opinion is unjustified. The learned AO after passing the order u/s 143(3) covering the issue of underreported receipt and assessing the income with the consent of assesse again reopened the assessment on the same issue of underreported receipt. In the statement of FACTS of form 35 it was narrated in detail and the learned CIT(A) could suo motu deal with this issue which was not the sub.ect matter of appeal 280 ITR 318. 3. The appellant reserves the right to alter or amend the grounds of appeal." 2. The facts giving rise to the present appeal are that, in this case, the assessee is an individual filed his return of income (ITR) on 14.04.2015 declaring total income at Rs. 10,07,950/-. The ITR of assessee was processed u/s 143(1)(a) of the Income Tax Act, 1961 ("....
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....rd the Ld. Representatives of the parties and perused the material available on records. The only issue which arises for my determination is whether the Ld. CIT(A) committed an error in dismissing the appeal of the assessee. Undisputedly, the assessee has not filed any appeal against the order passed u/s 147 read with section 143(3) of the Act dated 07.11.2019. The assessee chose to invoke the provisions of Section 154 of the Act by filing an application for rectification of the assessment order. The said rectification application came to be rejected by the Assessing Officer. For the sake of clarity, the relevant observation of the Assessing Authority is reproduced as under: - "2. Thereafter, proceedings u/s 147 of the Income Tax Act, 1961 was initiated in this case after recording reasons and taking prior approval of the Addl. Commissioner of Income Tax. The assessee was given opportunities of being heard through several statutory notices under the provisions of Income Tax Act. After considering all the facts and circumstances of the case, order u/s 147/143(3) of the IT Act was passed on 07.11.2019 assessing total income of Rs. 3166537/-. 3. The assessee filed an....
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....@ 4.52% thereon. Thus, re-opening of assessment is clearly based on change of opinion. In my considered view the appropriate remedy against such objection would have been appeal before Ld. CIT(A) u/s 246 of the Act. Even no such plea was raised in the rectification application. The scope of proceedings u/s 154 of the Act is very limited. It is for rectifying any error or mistake apparent from records. However, the case of the assessee in the present case is that the non-consideration of a binding precedent by AO tantamounted to mistake apparent from record. In the application u/s 154 of the Act which is enclosed at pages 14 to 15 of paper book, the assessee had relied upon the following case laws: - (a) CIT vs. Balchand Ajit Kumar (2003) 263 ITR 0610 (MP) (b) Man Mohan Sadani vs. CIT (2008) 304 ITR 52 (MP) 8. In the case of CIT vs. Balchand Ajit Kumar (supra), it was held as under: - "5. On appreciating the rival submissions raised at the Bar, we have carefully perused the order passed by the Commissioner of Income-tax (Appeals) and also that of the Tribunal. It is not disputed that the undisclosed income was Rs. 2,57,000. The sole question that arises....
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....tisfied rejected the same and added a sum of Rs. 8,19,255/- towards the sale profit of the assessee. The said order was contested by the assessee in the back drop that the sales was fully recorded and the assessee was following a system of recording the credit sales in the way as and when credit sales were made, the assessee issued cash memos of sales and the outstandings were recorded in the copy separately. The Ld. CIT(A) came to the conclusion that the entire credit sales could not have been included in the total income of the assessee and accordingly followed the method of adding a net profit rate of five percent, on these sales and accordingly a sum of Rs. 40,960/- was added on that score. Thus, net profit rate at 5% was sustained on the out of books of sales by Ld. CIT(A) against the addition of the entire sales that was not recorded with books of accounts of the case. 10. Now coming to the facts of the present case, there was a difference of Rs. 21,58,585/- into the business receipts found to have been recorded in the books of accounts maintained by the assessee and the receipts recorded in Form no. 26AS. The AO in original assessment order applied net profit rate at 4.5%....