The Income Tax Appellate Tribunal (ITAT), Chennai Bench, has recently, in an appeal filed before it, held that no legal or factual issue on merits can be argued or re- argued while considering rectification application.
The aforesaid observation was made by the Tribunal when an appeal was filed before it by the assesse Raymold Lighting Pvt. Ltd., as against the order of the Commissioner of Income Tax (Appeals)-3, Chennai, in ITA No.177/CIT(A)-3/2018-19, dated 16.12.2019, for Assessment Year 2011-12.
The grounds of the assessee’s appeal being that the learned CIT(A) ought not to have failed to adjudicate the issues pertaining to the assessment, arrayed in the grounds before him, including the validity of the order passed u/s 143(3) which is void abinitio, and that the Assessing Officer ought to have followed the procedure prescribed by the Apex Court in various judicial pronouncements when completing an assessment reopened u/s 148 of the Act, the DR for the Revenue, on the other hand supported the orders of the CIT(A) and that of the AO.
He stated that these issues being raised by the assessee before CIT(A) i.e., validity of assessment order u/s. 143(3) as well as reopening of assessment u/s. 148 of the Act, and the same being withdrawn by the assessee as well as being dimissed by the CIT(A) as withdrawn vide order in ITA No.200/CIT(A)-3/2016-17 dated 24.08.2017, now that the assessee cannot argue the matter while acting u/s. 154 of the Act.
He further added that the Section 154 of the Act being meant for mistake apparent from record, the same cannot be treated as a regular appeal and hence that the appeal of the assessee deserves to be dismissed, being non – maintainable.
Hearing the opposing contentions of both the sides and perusing the materials on record, the Tribunal commented:
“We have heard Ld Sr. DR and gone through the facts and circumstances of the case. We note that this appeal is against the rectification order passed by A.O and the impugned order by CIT(A) on this order of rectification u/s. 154 of the Act dated 27.09.2017. and further that in the original appeal filed before CIT(A) by the assessee, the assessee has withdrawn his appeal, wherein the grounds were raised on merits i.e., challenging the reopening the assessment and validity of assessment order passed u/s. 143(3) of the Act.”
“The CIT(A) in the impugned order has reproduced the grounds which clearly shows that the assessee want to re-argue the matter but u/s. 154 of the Act”, the Bench added.
Thus, dismissing the assessee’s appeal, it observed:
“We noted that the limitation prescribed u/s. 154 of the Act is that the mistake can be rectified which is apparent from record and no legal issue or factual issue on merits can be argued or re-argued particularly when the issue is highly debatable. Hence, we cannot entertain this appeal on this short point that this issue is being highly debatable as raised before CIT(A). Thus, we dismiss the appeal of the assessee.”
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