A.P.I. CIVILCON PRIVATE LIMITED,MUMBAI vs. CENTRAL CIRCLE 7(1), MUMBAI, MUMBAI

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “A” MUMBAI

BEFORE SHRI OM PRAKASH KANT (ACCOUNTANT MEMBER) AND SHRI ANIKESH BANERJEE (JUDICIAL MEMBER)

ITA Nos. 4599 to 4605/MUM/2025 Assessment Years: 2013-14 to 2019-2020 A.P.I. Civilcon Pvt. Ltd., Central Circle 7(1), Flat No. 101, 88 Avenue, Aayakar Bhavan, Jawahar Nagar Road No. 1, Vs. Mumbai-400020. Goregoan West, Motilal Nagar, S.O. Goregoan, Mumbai-400104. PAN NO. AAJCA 0006 C Appellant Respondent

: Ms. Ridhisha Jain (Virtually appear) Assessee by Revenue by : Mr. Rajesh Kumar Yadav, CIT-DR

: 15/04/2026 Date of Hearing Date of pronouncement : 28/04/2026

ORDER PER BENCH

These appeals by the assessee are arising from a common order dated 18.08.2023 passed by the Ld. Commissioner of Income- tax (Appeals) – 53, Mumbai [in short ‘the Ld. CIT(A)’] under section 154 of the Income-tax Act, 196( In short the Act) for assessment year 2013-14 to 2019-2020 respectively.

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Sr No AY Taxable Income declared (in Date of filing ROI Date of filing ROI Rs.) 1 2013-14 3,38,79,050 17.10.2013 17.10.2013 2 2014-15 4,50,53,250 30.11.2014 30.11.2014 3 2015-16 5,85,15,145 30.09.2015 30.09.2015 4 2016-17 8,50,06,040 16.10.2016 16.10.2016 5 2017-18 7,20,68,040 28.10.2017 28.10.2017 6 2018-19 8,77,13,890 15.10.2018 15.10.2018 7 2019-20 10,83,10,410 30.10.2019 30.10.2019 2.1 Thereafter, there was a search & seizure action u/s 132 on Thereafter, there was a search & seizure action u/s 132 on Thereafter, there was a search & seizure action u/s 132 on Group cases of M/s RPS Infra Project Private Limited, M/s Saket Group cases of M/s RPS Infra Project Private Limited, M/s Saket Group cases of M/s RPS Infra Project Private Limited, M/s Saket Infra Projects Private Limited, M/s Shanti Infra Engineering Private Infra Projects Private Limited, M/s Shanti Infra Engineering Private Infra Projects Private Limited, M/s Shanti Infra Engineering Private Limited and related entities on 06.11.2019. C related entities on 06.11.2019. Consequent to that a onsequent to that a survey action u/s 133A was conducted on Assessee Company on survey action u/s 133A was conducted on Assessee Company on survey action u/s 133A was conducted on Assessee Company on 06.11.2019. The cases of the assessee company were centralized 06.11.2019. The cases of the assessee company were centralized 06.11.2019. The cases of the assessee company were centralized alongwith RPS group of cases. Pursuant to centralization of the alongwith RPS group of cases. Pursuant to centralization of the alongwith RPS group of cases. Pursuant to centralization of the cases notice u/s 153A of the Act were issued upon cases notice u/s 153A of the Act were issued upon the assessee. In response to the said notice the assessee raised an objection that response to the said notice the assessee raised an objection that response to the said notice the assessee raised an objection that

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notice u/s 153A is not valid as assessee was not subject to search notice u/s 153A is not valid as assessee was not subject to search notice u/s 153A is not valid as assessee was not subject to search action u/s 132 of the Act. However the Ld AO was not fully satisfied of the Act. However the Ld AO was not fully satisfied of the Act. However the Ld AO was not fully satisfied with the objection raised, he theref with the objection raised, he therefore completed the assessment ore completed the assessment u/s. 153A r.w.s. 143(3) of the IT Act 1961 by making following u/s. 153A r.w.s. 143(3) of the IT Act 1961 by making following u/s. 153A r.w.s. 143(3) of the IT Act 1961 by making following addition/disallowance to the returned income. addition/disallowance to the returned income.

Sr No AY Total Addition (Rs.) Total income assessed Total income assessed by AO (in Rs.) Rs.) 1 2013-14 1,34,38,169 4,93,10,420 4,93,10,420 2 2014-15 51,22,038 5,01,75,290 5,01,75,290 3 2015-16 14,47,13,792 20,33,33,390 20,33,33,390 4 2016-17 9,41,45,460 17,91,51,500 17,91,51,500 5 2017-18 2,75,22,240 9,95,90,280 9,95,90,280 6 2018-19 33,48,540 9,10,62,430 9,10,62,430 7 2019-20 1,05,34,610 11,88,45,020 11,88,45,020 2.2 Against the said additions, appeals were filed before the Against the said additions, appeals were filed before the Against the said additions, appeals were filed before the Ld CIT(A).During the course of appellate proceedings elaborate CIT(A).During the course of appellate proceedings elaborate CIT(A).During the course of appellate proceedings elaborate submissions were filed. The assessee's appeals for A.Ys. 2013-14 to submissions were filed. The assessee's appeals for A.Ys. 2013 submissions were filed. The assessee's appeals for A.Ys. 2013 2019-20 were disposed of by the Ld. CIT(A) 20 were disposed of by the Ld. CIT(A)-53, Mumbai, vide 53, Mumbai, vide common order u/s 250 dated 16.02.2023. order u/s 250 dated 16.02.2023. Ld CIT(A) held that since CIT(A) held that since the appellant had been subjected only to survey action u/s 133A the appellant had been subjected only to survey action u/s 133A the appellant had been subjected only to survey action u/s 133A and not u/s 132 i.e. search and not u/s 132 i.e. search action, the notice issued u/s 153A was the notice issued u/s 153A was void ab-initio. The ld CIT(A) thus declared the assessments from AY CIT(A) thus declared the assessments from AY 2013-14 to 2019-20 as null and void and allowed Ground No. 1 and 20 as null and void and allowed Ground No. 1 and 20 as null and void and allowed Ground No. 1 and the additional ground. the additional ground. The relevant finding of ld CIT(A) is The relevant finding of ld CIT(A) is reproduced as under: reproduced as under:

“5. In this particular case, a survey action u/s. 133A had taken place. There is 5. In this particular case, a survey action u/s. 133A had taken place. There is 5. In this particular case, a survey action u/s. 133A had taken place. There is no evidence that a search action too had taken place in the name of the appellant. no evidence that a search action too had taken place in the name of the appellant. no evidence that a search action too had taken place in the name of the appellant. Thus, in my view, the appropriate section under which the remedial action could Thus, in my view, the appropriate section under which the remedial action could Thus, in my view, the appropriate section under which the remedial action could have been taken is Sec. 147 and not Sec. 153A. Besides, proceedings u/s. 153A en is Sec. 147 and not Sec. 153A. Besides, proceedings u/s. 153A en is Sec. 147 and not Sec. 153A. Besides, proceedings u/s. 153A

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can be undertaken only in a case where search is initiated u/s. 132 or books of can be undertaken only in a case where search is initiated u/s. 132 or books of can be undertaken only in a case where search is initiated u/s. 132 or books of accounts, other documents or any assets are requisitioned u/s. 132A of the Act. accounts, other documents or any assets are requisitioned u/s. 132A of the Act. accounts, other documents or any assets are requisitioned u/s. 132A of the Act. While the AO may have initiated While the AO may have initiated Sec. 153A proceedings on the bonafide belief of Sec. 153A proceedings on the bonafide belief of search, the appellant is entitled to challenge such assessment in the appellate search, the appellant is entitled to challenge such assessment in the appellate search, the appellant is entitled to challenge such assessment in the appellate proceedings. 5.1 In view of this fact and legal position, I am of the view that the appellant 5.1 In view of this fact and legal position, I am of the view that the appellant 5.1 In view of this fact and legal position, I am of the view that the appellant deserves to succeed on the issue deserves to succeed on the issue of Ground No. 1 and additional ground referred of Ground No. 1 and additional ground referred above.” 2.3 Thereafter, the he ld CIT(A) issued a notice u/s 154 dated CIT(A) issued a notice u/s 154 dated 26.07.2023 for rectification for rectification the appellate order dated 16/02/23. dated 16/02/23. After considering submission of the assessee, the ld CIT(A) in his After considering submission of the assessee, the ld CIT(A) in his After considering submission of the assessee, the ld CIT(A) in his order passed u/s 154 on 18/08/2023 rectified the said appellate passed u/s 154 on 18/08/2023 rectified the said appellate passed u/s 154 on 18/08/2023 rectified the said appellate order as under:

“3. Considering the above reply, para 5.1 in respect of orders passed “3. Considering the above reply, para 5.1 in respect of orders passed “3. Considering the above reply, para 5.1 in respect of orders passed u/s.250 for A.Y. 2013 u/s.250 for A.Y. 2013-14 to A.Y. 2019-2020 on 16.02.2023 stands 2020 on 16.02.2023 stands rectified and read as under: rectified and read as under: "5.1 In view of thi "5.1 In view of this fact and legal position, I am of the view that the s fact and legal position, I am of the view that the appellant deserves to succeed on the issue of Ground No. 1 and additional appellant deserves to succeed on the issue of Ground No. 1 and additional appellant deserves to succeed on the issue of Ground No. 1 and additional ground referred above. Under these circumstances, even as the order is ground referred above. Under these circumstances, even as the order is ground referred above. Under these circumstances, even as the order is held to be null and void, in line with the provisions of S held to be null and void, in line with the provisions of S held to be null and void, in line with the provisions of S.292B, 292BB, the AO is directed to undertake remedial action u/s 148 in terms of S.150 of AO is directed to undertake remedial action u/s 148 in terms of S.150 of AO is directed to undertake remedial action u/s 148 in terms of S.150 of the Act, for the years under reference. the Act, for the years under reference. Accordingly, Ground No.1 and the additional ground are treated as Accordingly, Ground No.1 and the additional ground are treated as Accordingly, Ground No.1 and the additional ground are treated as allowed.” 3. Aggrieved, with t with the impugned order of ld CIT(A CIT(A) passed u/s 154 of the Act, the assessee is the assessee is in appeal before the Tribunal the Tribunal raising the following grounds of appeal: the following grounds of appeal:

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and contrary to the provisions of the Income Tax Act and rules made and contrary to the provisions of the Income Tax Act and ru and contrary to the provisions of the Income Tax Act and ru thereunder. 2. On the facts and in the circumstances of the case and in law, the 2. On the facts and in the circumstances of the case and in law, the 2. On the facts and in the circumstances of the case and in law, the Hon'ble CIT(A) erred in reviewing his own appellate order u/s 250 of Hon'ble CIT(A) erred in reviewing his own appellate order u/s 250 of Hon'ble CIT(A) erred in reviewing his own appellate order u/s 250 of the Act under the guise of provisions of section 154 of the Act despite the Act under the guise of provisions of section 154 of the Act despite the Act under the guise of provisions of section 154 of the Act despite there being no mistake there being no mistake apparent from the record by unwarrantedly apparent from the record by unwarrantedly using power vested u/s 150 of the Act and the reason assigned for using power vested u/s 150 of the Act and the reason assigned for using power vested u/s 150 of the Act and the reason assigned for doing so are wrong and contrary to the provisions of the Income Tax doing so are wrong and contrary to the provisions of the Income Tax doing so are wrong and contrary to the provisions of the Income Tax Act and rules made thereunder. Act and rules made thereunder. 3. Your appellant craves leave to add to, amend, 3. Your appellant craves leave to add to, amend, alter or delete any alter or delete any of the above grounds of appeal on or before the date of hearing. of the above grounds of appeal on or before the date of hearing. of the above grounds of appeal on or before the date of hearing. 4. At the threshold, it is observed that there is a delay of 626 days At the threshold, it is observed that there is a delay of 626 days At the threshold, it is observed that there is a delay of 626 days in filing the present appeal. The learned counsel for the assessee in filing the present appeal. The learned counsel for the assessee in filing the present appeal. The learned counsel for the assessee has placed reliance upon a sworn a has placed reliance upon a sworn affidavit of the Director, wherein ffidavit of the Director, wherein the circumstances leading to such delay have been elaborately set the circumstances leading to such delay have been elaborately set the circumstances leading to such delay have been elaborately set out. The relevant part of which is reproduced as under: The relevant part of which is reproduced as under: The relevant part of which is reproduced as under:

“4) That the delay in filing the appeal is due to following reasons: “4) That the delay in filing the appeal is due to following reasons: “4) That the delay in filing the appeal is due to following reasons: a) The Appellant first received a) The Appellant first received verbal information about the impugned verbal information about the impugned order in August 2023. However, a certified or hard copy of the order order in August 2023. However, a certified or hard copy of the order order in August 2023. However, a certified or hard copy of the order was not received at that time, preventing us from taking any was not received at that time, preventing us from taking any was not received at that time, preventing us from taking any immediate remedial action. immediate remedial action. b) Concurrently, the Appellant and its staff were preoccupie b) Concurrently, the Appellant and its staff were preoccupie b) Concurrently, the Appellant and its staff were preoccupied with the time- sensitive task of finalizing the books of account for the sensitive task of finalizing the books of account for the sensitive task of finalizing the books of account for the mandatory statutory audit of several group companies, which was mandatory statutory audit of several group companies, which was mandatory statutory audit of several group companies, which was subsequently followed by the filing of tax audit report and Income subsequently followed by the filing of tax audit report and Income subsequently followed by the filing of tax audit report and Income Tax Returns for these companies and their director Tax Returns for these companies and their directors/partners. s/partners. c) This cycle of routine statutory compliances was only completed c) This cycle of routine statutory compliances was only completed c) This cycle of routine statutory compliances was only completed around mid- October 2023. October 2023. d) Immediately thereafter, in the last week of October 2023, the d) Immediately thereafter, in the last week of October 2023, the d) Immediately thereafter, in the last week of October 2023, the Appellant's business premises underwent an extensive search action Appellant's business premises underwent an extensive search action Appellant's business premises underwent an extensive search action u/s 132 of the Act u/s 132 of the Act by the Income Tax Department from Scindia by the Income Tax Department from Scindia House, Ballard Pier, led by Shri Deepak Shukla, DDIT (Inv). The House, Ballard Pier, led by Shri Deepak Shukla, DDIT (Inv). The House, Ballard Pier, led by Shri Deepak Shukla, DDIT (Inv). The investigation proceedings consumed the full attention and manpower investigation proceedings consumed the full attention and manpower investigation proceedings consumed the full attention and manpower resources of the Appellant and its key personnel for approximately 2 resources of the Appellant and its key personnel for approximately 2 resources of the Appellant and its key personnel for approximately 2 to 3 months. e) No sooner had the income tax survey concluded, the Appellant ) No sooner had the income tax survey concluded, the Appellant ) No sooner had the income tax survey concluded, the Appellant faced a consecutive survey by the GST Department, which again faced a consecutive survey by the GST Department, which again faced a consecutive survey by the GST Department, which again

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engaged the management and staff for another one month, causing engaged the management and staff for another one month, causing engaged the management and staff for another one month, causing significant disruption to normal business operations. significant disruption to normal business operations. f) In the aftermath of these back ermath of these back-to-back enforcement actions, the back enforcement actions, the Appellant was required to engage extensively with its tax and legal Appellant was required to engage extensively with its tax and legal Appellant was required to engage extensively with its tax and legal consultants to assess the implications, respond to queries, and consultants to assess the implications, respond to queries, and consultants to assess the implications, respond to queries, and manage the resultant consequences, which was an extremely manage the resultant consequences, which was an extremely manage the resultant consequences, which was an extremely demanding and time d time-consuming process which took around 14 consuming process which took around 14-15 months and in this process we lost sight of appeal to be filed before months and in this process we lost sight of appeal to be filed before months and in this process we lost sight of appeal to be filed before Hon'ble ITAT. g) Compounding these difficulties, the company's accountant g) Compounding these difficulties, the company's accountant g) Compounding these difficulties, the company's accountant proceeded on leave and subsequently resigned without formal not proceeded on leave and subsequently resigned without formal not proceeded on leave and subsequently resigned without formal notice. This sudden departure created a severe administrative vacuum, This sudden departure created a severe administrative vacuum, This sudden departure created a severe administrative vacuum, forcing the management to personally handle day forcing the management to personally handle day-to-day accounting day accounting and other affairs, thereby diverting focus from other criticalmatters, and other affairs, thereby diverting focus from other criticalmatters, and other affairs, thereby diverting focus from other criticalmatters, including litigation. Since accountant who was handl including litigation. Since accountant who was handling tax matters ing tax matters did not apprise us of pending appeal to be filed before Hon'ble ITAT. did not apprise us of pending appeal to be filed before Hon'ble ITAT. did not apprise us of pending appeal to be filed before Hon'ble ITAT. In the said process we lost further 1 month. In the said process we lost further 1 month. h) Owing to the cumulative stress and disruption caused by the h) Owing to the cumulative stress and disruption caused by the h) Owing to the cumulative stress and disruption caused by the aforementioned events, the fact that the statutory period for aforementioned events, the fact that the statutory period for aforementioned events, the fact that the statutory period for filing an appeal against the order had lapsed was inadvertently overlooked. appeal against the order had lapsed was inadvertently overlooked. appeal against the order had lapsed was inadvertently overlooked. i) Upon my actual receipt of the order and realization of the lapses, I i) Upon my actual receipt of the order and realization of the lapses, I i) Upon my actual receipt of the order and realization of the lapses, I immediately instructed our Tax Consultant, CA Shri Mohanlal Jain, to immediately instructed our Tax Consultant, CA Shri Mohanlal Jain, to immediately instructed our Tax Consultant, CA Shri Mohanlal Jain, to review the matter. Upon his advice, we review the matter. Upon his advice, we were apprised that an appeal were apprised that an appeal lies before the Hon'ble Tribunal. Which has got inordinate delay. lies before the Hon'ble Tribunal. Which has got inordinate delay. lies before the Hon'ble Tribunal. Which has got inordinate delay. j) That thereafter the preparation of the appeal papers was j) That thereafter the preparation of the appeal papers was j) That thereafter the preparation of the appeal papers was undertaken promptly. However, there was an additional, unavoidable undertaken promptly. However, there was an additional, unavoidable undertaken promptly. However, there was an additional, unavoidable delay of approximately 20 days as delay of approximately 20 days as our consultant was occupied with our consultant was occupied with the statutory deadline for filing tax audit reports. The appeal was the statutory deadline for filing tax audit reports. The appeal was the statutory deadline for filing tax audit reports. The appeal was then prepared, and the requisite fee was also paid. then prepared, and the requisite fee was also paid. In the circumstances I submit and request that the delay in filing of In the circumstances I submit and request that the delay in filing of In the circumstances I submit and request that the delay in filing of this appeal may be condoned. The this appeal may be condoned. The lapse on the part of the appellant lapse on the part of the appellant in not filing the present appeals within the stipulated period was in not filing the present appeals within the stipulated period was in not filing the present appeals within the stipulated period was unintentional and entirely due to inadvertence and also due to unintentional and entirely due to inadvertence and also due to unintentional and entirely due to inadvertence and also due to unavoidable circumstances mentioned above. unavoidable circumstances mentioned above. 4.1 Addressing the relevant part of the affidavit, the Ld. Addressing the relevant part of the affidavit, the Ld. Addressing the relevant part of the affidavit, the Ld. counsel submitted that counsel submitted that the delay was occasioned due to a the delay was occasioned due to a confluence of circumstances beyond the immediate control of the confluence of circumstances beyond the immediate control of the confluence of circumstances beyond the immediate control of the assessee. These include, assessee. These include, inter alia, the absence of a certified , the absence of a certified copy of the impugned order at the relevant time, engagement in gned order at the relevant time, engagement in gned order at the relevant time, engagement in time-bound bound bound statutory statutory statutory compliances, compliances, compliances, search search search proceedings proceedings proceedings

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conducted under section 132 of the Act, subsequent survey conducted under section 132 of the Act, subsequent survey conducted under section 132 of the Act, subsequent survey actions by the GST authorities, and the unforeseen resignation actions by the GST authorities, and the unforeseen resignation actions by the GST authorities, and the unforeseen resignation of the accountant responsible for h of the accountant responsible for handling tax matters. The andling tax matters. The cumulative effect of these events, as pleaded, resulted in the cumulative effect of these events, as pleaded, resulted in the cumulative effect of these events, as pleaded, resulted in the inadvertent lapse in filing the appeal within the prescribed inadvertent lapse in filing the appeal within the prescribed inadvertent lapse in filing the appeal within the prescribed period.

4.2 On the contrary, the Ld. Departmental Representative On the contrary, the Ld. Departmental Representative On the contrary, the Ld. Departmental Representative (DR) opposed the condonation by placing opposed the condonation by placing reliance on the reliance on the decision of the Co decision of the Co-ordinate Bench in the case of Attivo ordinate Bench in the case of Attivo Protezione (P.) Ltd. v. ITO [2025] 180 taxmann.com 104 Protezione (P.) Ltd. v. ITO [2025] 180 taxmann.com 104 Protezione (P.) Ltd. v. ITO [2025] 180 taxmann.com 104 (Mumbai-Trib.) contended that “sufficient cause” cannot be contended that “sufficient cause” cannot be contended that “sufficient cause” cannot be construed liberally in cases involving negligence or inaction construed liberally in cases involving negligence or inaction construed liberally in cases involving negligence or inaction and therefore, the delay in filing the appeal should not be condoned. efore, the delay in filing the appeal should not be condoned. efore, the delay in filing the appeal should not be condoned. The relevant part of the decision relied upon by the Ld. DR is The relevant part of the decision relied upon by the Ld. DR is The relevant part of the decision relied upon by the Ld. DR is reproduced as under: reproduced as under: “6. To understand the scope of the term "sufficient cause" in matters “6. To understand the scope of the term "sufficient cause" in matters “6. To understand the scope of the term "sufficient cause" in matters of delay, reliance is placed on the deci of delay, reliance is placed on the decision of Hon'ble Supreme Court sion of Hon'ble Supreme Court in the case of Basawaraj v. Special Land Acquisition Officer AIR 2014 in the case of Basawaraj v. Special Land Acquisition Officer AIR 2014 in the case of Basawaraj v. Special Land Acquisition Officer AIR 2014 SC 746 wherein the Hon'ble Supreme Court held that the sufficient SC 746 wherein the Hon'ble Supreme Court held that the sufficient SC 746 wherein the Hon'ble Supreme Court held that the sufficient cause does not include the negligent manner in which the applicant cause does not include the negligent manner in which the applicant cause does not include the negligent manner in which the applicant had acted or/ and there had acted or/ and there was a want of bona fide, on his/her part. If was a want of bona fide, on his/her part. If a party does not act diligently or remains inactive, it cannot qualify a party does not act diligently or remains inactive, it cannot qualify a party does not act diligently or remains inactive, it cannot qualify as sufficient ground allowing the court to exercise discretion in favour as sufficient ground allowing the court to exercise discretion in favour as sufficient ground allowing the court to exercise discretion in favour of such a party. Condonation of delay is not an automatic right bu of such a party. Condonation of delay is not an automatic right bu of such a party. Condonation of delay is not an automatic right but requires the person requesting it to provide a valid explanation for requires the person requesting it to provide a valid explanation for requires the person requesting it to provide a valid explanation for each day of delay and demonstrate a reasonable cause. "Sufficient each day of delay and demonstrate a reasonable cause. "Sufficient each day of delay and demonstrate a reasonable cause. "Sufficient Cause" cannot be liberally interpreted, if negligence, inaction or lack Cause" cannot be liberally interpreted, if negligence, inaction or lack Cause" cannot be liberally interpreted, if negligence, inaction or lack of bona fides is attributed to the party. In th of bona fides is attributed to the party. In the case of Anshul Agarwal e case of Anshul Agarwal v. New Okhla Industrial Development Authority (2011) 14 SCC 578, v. New Okhla Industrial Development Authority (2011) 14 SCC 578, v. New Okhla Industrial Development Authority (2011) 14 SCC 578, the hon'ble Apex Court held that the reason provided for the delay the hon'ble Apex Court held that the reason provided for the delay the hon'ble Apex Court held that the reason provided for the delay

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must be something beyond the individual's control that prevented must be something beyond the individual's control that prevented must be something beyond the individual's control that prevented them from approaching the Court. them from approaching the Court. 7. It is well established in law that the period of limitation has to be . It is well established in law that the period of limitation has to be . It is well established in law that the period of limitation has to be construed somewhat strictly as it has the effect of vesting for one and construed somewhat strictly as it has the effect of vesting for one and construed somewhat strictly as it has the effect of vesting for one and taking away right from the other. To condone the delay in a taking away right from the other. To condone the delay in a taking away right from the other. To condone the delay in a mechanical or a routine manner may amount to jeopard mechanical or a routine manner may amount to jeopard mechanical or a routine manner may amount to jeopardizing the legislative intent behind Section 5 of the Act. Where the parties chose legislative intent behind Section 5 of the Act. Where the parties chose legislative intent behind Section 5 of the Act. Where the parties chose to sleep over their rights for prolonged periods without any just cause, to sleep over their rights for prolonged periods without any just cause, to sleep over their rights for prolonged periods without any just cause, can hardly claim equity in justice particularly faced with the statutory can hardly claim equity in justice particularly faced with the statutory can hardly claim equity in justice particularly faced with the statutory provisions of Section 5.In c provisions of Section 5.In construing enactments which provide period onstruing enactments which provide period of limitation for institution of proceedings, the purpose is to intimate of limitation for institution of proceedings, the purpose is to intimate of limitation for institution of proceedings, the purpose is to intimate people that after lapse of certain time from a certain event, proceeding people that after lapse of certain time from a certain event, proceeding people that after lapse of certain time from a certain event, proceeding will not be entertained where a strict grammatical construction is will not be entertained where a strict grammatical construction is will not be entertained where a strict grammatical construction is normally the safe ormally the safe.”

4.3 We have considered rival submissions of the parties and We have considered rival submissions of the parties and We have considered rival submissions of the parties and perused the relevant material on record of the issue of the delay. perused the relevant material on record of the issue of the delay. perused the relevant material on record of the issue of the delay.

In our opinion while examining the issue of condonation of the In our opinion while examining the issue of condonation of the In our opinion while examining the issue of condonation of the delay, most important point is the explanation of the assessee and delay, most important point is the explanation of the assessee and delay, most important point is the explanation of the assessee and whether the same is acceptable to the Court. whether the same is acceptable to the Court. It is trite law that the It is trite law that the expression “sufficient cause” must receive a pragmatic and justice- expression “sufficient cause” must receive a pragmatic a expression “sufficient cause” must receive a pragmatic a oriented oriented oriented interpretation, interpretation, interpretation, depending depending depending upon upon upon the the the facts facts facts and and and circumstances of each case. The determinative factor is whether the circumstances of each case. The determinative factor is whether the circumstances of each case. The determinative factor is whether the explanation furnished is bona fide and not tainted by deliberate explanation furnished is bona fide and not tainted by deliberate explanation furnished is bona fide and not tainted by deliberate inaction or negligence. inaction or negligence.

4.4 In the present case, the expla In the present case, the explanation offered by the assessee nation offered by the assessee does not reflect any lack of diligence or mala fide intent. On the does not reflect any lack of diligence or mala fide intent. On the does not reflect any lack of diligence or mala fide intent. On the contrary, the material on record indicates that the assessee was contrary, the material on record indicates that the assessee was contrary, the material on record indicates that the assessee was preoccupied preoccupied preoccupied with with with extraordinary extraordinary extraordinary circumstances, circumstances, circumstances, including including including enforcement actions by multiple statu enforcement actions by multiple statutory authorities, which tory authorities, which

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reasonably diverted its attention and resources. The disruption reasonably diverted its attention and resources. The disruption reasonably diverted its attention and resources. The disruption caused caused caused by by by such such such proceedings, proceedings, proceedings, coupled coupled coupled with with with administrative administrative administrative dislocation arising from the sudden departure of the concerned dislocation arising from the sudden departure of the concerned dislocation arising from the sudden departure of the concerned accountant, constitutes a plausible and satisfact accountant, constitutes a plausible and satisfactory explanation for ory explanation for the delay.

4.5 The reliance placed by the Revenue on the aforesaid judicial The reliance placed by the Revenue on the aforesaid judicial The reliance placed by the Revenue on the aforesaid judicial precedents is distinguishable on facts, as those decisions pertain to precedents is distinguishable on facts, as those decisions pertain to precedents is distinguishable on facts, as those decisions pertain to cases involving negligence or absence of bona fides, which is not the cases involving negligence or absence of bona fides, which is not the cases involving negligence or absence of bona fides, which is not the position obtaining in the present case. in the present case. It is apposite to refer to the It is apposite to refer to the decision of the Hon’ble Supreme Court in decision of the Hon’ble Supreme Court in Collector, Land Acquisition Collector, Land Acquisition v. Mst. Katiji & Others v. Mst. Katiji & Others [(1987) 167 ITR 471 (SC)], wherein it has [(1987) 167 ITR 471 (SC)], wherein it has been been been held held held that that that when when when substantial substantial substantial justice justice justice and and and technical technical technical considerations are in conflict, the cause of substantial justice are in conflict, the cause of substantial justice are in conflict, the cause of substantial justice deserves to be preferred. deserves to be preferred. Applying the aforesaid principle, and Applying the aforesaid principle, and having regard to the totality of the circumstances, we are satisfied having regard to the totality of the circumstances, we are satisfied having regard to the totality of the circumstances, we are satisfied that the assessee has demonstrated “sufficient cause” for the delay. that the assessee has demonstrated “sufficient cause” for the delay. that the assessee has demonstrated “sufficient cause” for the delay. The explanation furnished is bona fide and merits acceptance. explanation furnished is bona fide and merits acceptance. explanation furnished is bona fide and merits acceptance. Accordingly, the delay of 626 days in filing the appeal is condoned, Accordingly, the delay of 626 days in filing the appeal is condoned, Accordingly, the delay of 626 days in filing the appeal is condoned, and the appeal is admitted for adjudication on merits. and the appeal is admitted for adjudication on merits. and the appeal is admitted for adjudication on merits.

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Ld. CIT(A) erroneously invoked the restrictive power of rectification Ld. CIT(A) erroneously invoked the restrictive power of rectification Ld. CIT(A) erroneously invoked the restrictive power of rectification to issue a substantive direction to the Assessing Officer (AO) to to issue a substantive direction to the Assessing Officer (AO) to to issue a substantive direction to the Assessing Officer (AO) to initiate fresh proceedings under initiate fresh proceedings under Section 148, thereby effectively , thereby effectively reviewing his own prior decision under the guise of correcting a reviewing his own prior decision under the guise of reviewing his own prior decision under the guise of mistake.

5.1 The learned Counsel emphasized The learned Counsel emphasized that Section 154 Section 154 confers a narrow jurisdiction, strictly confined to the correction of mistakes narrow jurisdiction, strictly confined to the correction of mistakes narrow jurisdiction, strictly confined to the correction of mistakes "apparent from the record." "apparent from the record." He placed reliance on the following eliance on the following decisions of the Hon’ble Supreme Court decisions of the Hon’ble Supreme Court to delineate the boundaries to delineate the boundaries of this power: (i) T.S. Balaram, ITO v. Volkart Brothers (1971) 82 T.S. Balaram, ITO v. Volkart Brothers (1971) 82 T.S. Balaram, ITO v. Volkart Brothers (1971) 82 ITR 50 (SC) where in it is held that “ A mistake apparent from the ITR 50 (SC) where in it is held that “ A mistake apparent from the ITR 50 (SC) where in it is held that “ A mistake apparent from the record must be an obvious and patent mistake; it cannot be record must be an obvious and patent mistake; it cannot be record must be an obvious and patent mistake; it cannot be something which requires long something which requires long-drawn reasoning or debate.” wn reasoning or debate.” (ii) CIT v. Hero Cycles Pvt Ltd(1997) 228 ITR 463 (SC) where in it is held v. Hero Cycles Pvt Ltd(1997) 228 ITR 463 (SC) where in it is held v. Hero Cycles Pvt Ltd(1997) 228 ITR 463 (SC) where in it is held that Power of rectification cannot be used to reopen or reconsider a that Power of rectification cannot be used to reopen or reconsider a that Power of rectification cannot be used to reopen or reconsider a concluded issue. (iii) ACIT v. Saurashtra Kutch Stock Exchange (iii) ACIT v. Saurashtra Kutch Stock Exchange (iii) ACIT v. Saurashtra Kutch Stock Exchange Ltd(2008) 305 ITR 227 (S Ltd(2008) 305 ITR 227 (SC) where in it is held that Mistake C) where in it is held that Mistake apparent must be self apparent must be self-evident; not requiring re-appreciation of law. appreciation of law.

5.2 It is further submitted that in the original appellate It is further submitted that in the original appellate It is further submitted that in the original appellate proceedings, the Ld. CIT(A) had already adjudicated Ground No. 1 proceedings, the Ld. CIT(A) had already adjudicated proceedings, the Ld. CIT(A) had already adjudicated on merits, declaring the assessment under on merits, declaring the assessment under Section 153A Section 153A to be void ab initio and allowing the appeal in toto. The learned Counsel and allowing the appeal in toto. The learned Counsel and allowing the appeal in toto. The learned Counsel argues that once an order is passed under argues that once an order is passed under Section 250 Section 250, the Ld. CIT(A) becomes functus officio functus officio. The Act provides no inherent p . The Act provides no inherent power

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of review to the CIT(A); his authority is thereafter restricted to the of review to the CIT(A); his authority is thereafter restricted to the of review to the CIT(A); his authority is thereafter restricted to the correction of clerical or arithmetical errors, not the substantive correction of clerical or arithmetical errors, not the substantive correction of clerical or arithmetical errors, not the substantive alteration of the relief granted. alteration of the relief granted.

5.3 The ld Counsel further submitted that ld Counsel further submitted that the insertion of a fresh the insertion of a fresh direction to AO to issue notice u/s 148 amounts to a review of the AO to issue notice u/s 148 amounts to a review of the AO to issue notice u/s 148 amounts to a review of the earlier order, which is beyond jurisdiction. earlier order, which is beyond jurisdiction. He submitted He submitted that, the ld CIT(A) cannot use powers conformed u/s 150 read with Section CIT(A) cannot use powers conformed u/s 150 read with Section CIT(A) cannot use powers conformed u/s 150 read with Section 154 to confer jurisdiction on AO by way of rectification order to 154 to confer jurisdiction on AO by way of rectification order to 154 to confer jurisdiction on AO by way of rectification order to reopen the void and and ab initio completed assessment because of the completed assessment because of the following facts; (i) (i) Section 150(1) merely removes the bar of Section 150(1) merely removes the bar of limitation where a valid finding or direction is given in an order limitation where a valid finding or direction is given in an order limitation where a valid finding or direction is given in an order passed in appeal, reference, or revision. passed in appeal, reference, or revision. (ii) The pre-condition is that condition is that such finding or direction must arise incidentally and necessarily out such finding or direction must arise incidentally and necessarily out such finding or direction must arise incidentally and necessarily out of the issue adjudicated, not from a collateral or subsequent of the issue adjudicated, not from a collateral or subsequent of the issue adjudicated, not from a collateral or subsequent rectification

5.4 Furthermore, the learned Counsel challenges the Ld. CIT(A)’s Furthermore, the learned Counsel challenges the Ld. CIT(A)’s Furthermore, the learned Counsel challenges the Ld. CIT(A)’s reliance on Section 150(1) n 150(1). It is contended that a "finding or It is contended that a "finding or direction" must arise incidentally and necessarily out of the direction" must arise incidentally and necessarily out of the direction" must arise incidentally and necessarily out of the adjudication of the appeal itself. A post adjudication of the appeal itself. A post-facto insertion via a facto insertion via a rectification order cannot constitute a valid "direction" to enlarge rectification order cannot constitute a valid "direction" to enlarge rectification order cannot constitute a valid "direction" to enlarge jurisdiction or cure a fundamental defect. Reference was made to cure a fundamental defect. Reference was made to cure a fundamental defect. Reference was made to ITO v. Murlidhar Bhagwan Das (1964) 52 ITR 335 (SC) and CIT v. ITO v. Murlidhar Bhagwan Das (1964) 52 ITR 335 (SC) ITO v. Murlidhar Bhagwan Das (1964) 52 ITR 335 (SC) Greenworld Corporation (2009) 314 ITR 81 (SC) Greenworld Corporation (2009) 314 ITR 81 (SC) to underscore that to underscore that

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the CIT(A) cannot dictate a course of action to the AO that lies the CIT(A) cannot dictate a course of action to the AO that lies the CIT(A) cannot dictate a course of action to the AO that lies outside the AO's original jurisdiction. 's original jurisdiction.

5.5 It was further submitted that the CIT(A)'s insertion of a new submitted that the CIT(A)'s insertion of a new submitted that the CIT(A)'s insertion of a new clause directing "remedial action u/s 148 in terms of s.150" is clause directing "remedial action u/s 148 in terms of s.150" is clause directing "remedial action u/s 148 in terms of s.150" is legally unsustainable. This view has been upheld by Hon'ble Jaipur legally unsustainable. This view has been upheld by Hon'ble Jaipur legally unsustainable. This view has been upheld by Hon'ble Jaipur ITAT in its most recent judgement ITAT in its most recent judgement in the case of DCIT vs Vaibhav in the case of DCIT vs Vaibhav Banka Aakarshan in ITA 301/JP/2025. Banka Aakarshan in ITA 301/JP/2025.

5.6 Regarding the curative provisions of Regarding the curative provisions of Sections 292B and Sections 292B and 292BB, the learned Counsel relies on , the learned Counsel relies on Laxman Das Khandelwal v. Laxman Das Khandelwal v. ITO (2019) 417 ITR 325 (SC) ITO (2019) 417 ITR 325 (SC), asserting that these sections cannot , asserting that these sections cannot breathe life into an action where the very assumption of jurisdiction breathe life into an action where the very assumption of jurisdiction breathe life into an action where the very assumption of jurisdiction is fundamentally flawed. is fundamentally flawed.

5.7 The ld Counsel referred to provisions of The ld Counsel referred to provisions of section 251(1)(a), section 251(1)(a), and submitted that the CIT(A) may: the CIT(A) may: (i) Confirm, reduce, enhance or Confirm, reduce, enhance or annul the assessment; or the assessment; or (ii) Set aside the assessment and refer the Set aside the assessment and refer the case back to the AO for fresh assessment case back to the AO for fresh assessment, but he cannot issue an cannot issue an independent direction to initiate proceedings under a different independent direction to initiate proceedings under a different independent direction to initiate proceedings under a different section (like 147/148). section (like 147/148). By doing so, the ld CIT(A) has travelled CIT(A) has travelled beyond his statutory po beyond his statutory powers, rendering the rectification order void wers, rendering the rectification order void ab initio.

5.8 The ld Counsel concluded that i he ld Counsel concluded that in view of the foregoing facts n view of the foregoing facts and submissions and settled legal principles, the and submissions and settled legal principles, the ld CIT(A) exceeded his jurisdiction in invoking the provisions of section 154 of the Act his jurisdiction in invoking the provisions of section 154 of the his jurisdiction in invoking the provisions of section 154 of the

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and ld CIT(A) cannot revisit or modify his own concluded appellate CIT(A) cannot revisit or modify his own concluded appellate CIT(A) cannot revisit or modify his own concluded appellate order, nor can he direct the Ld. Assessing Officer to initiate order, nor can he direct the Ld. Assessing Officer to initiate order, nor can he direct the Ld. Assessing Officer to initiate proceedings under a different section of the Act. Such action is proceedings under a different section of the Act. Such action is proceedings under a different section of the Act. Such action is beyond the scope of provision contained under section 154. beyond the scope of provision contained under section 154 beyond the scope of provision contained under section 154 Therefore, the order passed by the Therefore, the order passed by the ld CIT(A) under section 154 of CIT(A) under section 154 of the Act, as well as any consequential assessment proceedings the Act, as well as any consequential assessment proceedings the Act, as well as any consequential assessment proceedings initiated pursuant thereto, deserve to be quashed forthwith. initiated pursuant thereto, deserve to be quashed forthwith. initiated pursuant thereto, deserve to be quashed forthwith.

5.9 Before Before us, us, the the Ld. Ld. Departmental Departmental Representative Representative (DR) (DR) maintains that the Ld. CIT(A) acted within the permissible ambit of maintains that the Ld. CIT(A) acted within the permissible ambit of maintains that the Ld. CIT(A) acted within the permissible ambit of Section 154. Relying on . Relying on CIT v. Keshri Metal (P.) Ltd. [1999] 104 CIT v. Keshri Metal (P.) Ltd. [1999] 104 Taxman 360 (SC), the DR argues that any mistake evident from the , the DR argues that any mistake evident from the , the DR argues that any mistake evident from the record—including an omission to include a remedial directi including an omission to include a remedial direction—is including an omission to include a remedial directi eligible for rectification. eligible for rectification. He further submitted that when the He further submitted that when the assessee itself had given no objection for carrying out such assessee itself had given no objection for carrying out such assessee itself had given no objection for carrying out such rectification, now the assessee can’t challenge the same. The Ld. rectification, now the assessee can’t challenge the same. rectification, now the assessee can’t challenge the same. DR further relied on the decision of the Hon’ble Gujarat High Court DR further relied on the decision of the Hon’ble Gujarat Hi DR further relied on the decision of the Hon’ble Gujarat Hi in the case of ACIT v. Saurathra Kutch Stock Exchange Ltd. [2003] in the case of ACIT v. Saurathra Kutch Stock Exchange Ltd. [2003] in the case of ACIT v. Saurathra Kutch Stock Exchange Ltd. [2003] 130 Taxman 316 (Gujarat) 130 Taxman 316 (Gujarat) asserting that the power of rectification asserting that the power of rectification is intended to serve the ends of justice. It is the Revenue's stance is intended to serve the ends of justice. It is the Revenue's stance is intended to serve the ends of justice. It is the Revenue's stance that the omission of the direction to the AO that the omission of the direction to the AO was a rectifiable was a rectifiable oversight and did not constitute a "review" in the prohibited sense. oversight and did not constitute a "review" in the prohibited sense. oversight and did not constitute a "review" in the prohibited sense. The relevant part of the said decision is reproduced as under: The relevant part of the said decision is reproduced as under: The relevant part of the said decision is reproduced as under:

“32. To sum up: “32. To sum up:

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(a) The Tribunal has power to rectify a mistake apparent from the (a) The Tribunal has power to rectify a mistake apparent from the (a) The Tribunal has power to rectify a mistake apparent from the record on its own motion record on its own motion or on an application by a party under or on an application by a party under section 254(2) of the Act; section 254(2) of the Act; (b) An order on appeal would consist of an order made under (b) An order on appeal would consist of an order made under (b) An order on appeal would consist of an order made under section 254(1) of the Act or it could be an order made under sub section 254(1) of the Act or it could be an order made under sub section 254(1) of the Act or it could be an order made under sub- section (1) as amended by an order under sub section (1) as amended by an order under sub-section (2) of secti section (2) of section 254 of the Act; 254 of the Act; (c) The power of rectification is to be exercised to remove an error (c) The power of rectification is to be exercised to remove an error (c) The power of rectification is to be exercised to remove an error or correct a mistake and not for disturbing finality, the or correct a mistake and not for disturbing finality, the or correct a mistake and not for disturbing finality, the fundamental principle being, that power of rectification is for fundamental principle being, that power of rectification is for fundamental principle being, that power of rectification is for justice and fair play; justice and fair play; (d) That power of recti (d) That power of rectification can be exercised even if a mistake is fication can be exercised even if a mistake is committed by the Tribunal or even if a mistake has occurred at the committed by the Tribunal or even if a mistake has occurred at the committed by the Tribunal or even if a mistake has occurred at the instance of party to the appeal; instance of party to the appeal; (e) A mistake apparent from record should be self (e) A mistake apparent from record should be self-evident, should evident, should not be a debatable issue, but this test mig not be a debatable issue, but this test might break down, because ht break down, because judicial opinions differ, and what is a mistake apparent from the judicial opinions differ, and what is a mistake apparent from the judicial opinions differ, and what is a mistake apparent from the record cannot be defined precisely and must be left to be record cannot be defined precisely and must be left to be record cannot be defined precisely and must be left to be determined judicially on the facts of each case: determined judicially on the facts of each case: (f) Non-consideration of a judgment of the jurisdictional Hi consideration of a judgment of the jurisdictional High Court consideration of a judgment of the jurisdictional Hi would always constitute a mistake apparent from the record, would always constitute a mistake apparent from the record, would always constitute a mistake apparent from the record, regardless of the judgment being rendered prior to or subsequent regardless of the judgment being rendered prior to or subsequent regardless of the judgment being rendered prior to or subsequent to the order proposed to be rectified; to the order proposed to be rectified; (g) After the mistake is corrected, consequential order must follow, (g) After the mistake is corrected, consequential order must follow, (g) After the mistake is corrected, consequential order must follow, and the Tribun and the Tribunal has power to pass all necessary consequential al has power to pass all necessary consequential orders.” 6. We have heard the rival submissions, perused the material on have heard the rival submissions, perused the material on have heard the rival submissions, perused the material on record, and considered the judicial precedents cited. The primary record, and considered the judicial precedents cited. The primary record, and considered the judicial precedents cited. The primary question for our determination is whether the Ld. CIT(A), under the question for our determination is whether the Ld. CIT(A), under the question for our determination is whether the Ld. CIT(A), under the aegis of Section 154 Section 154, could validly insert a direction to the A , could validly insert a direction to the AO to reopen assessment under reopen assessment under Section 148.

6.1 While the power to rectify an "apparent mistake" is While the power to rectify an "apparent mistake" is While the power to rectify an "apparent mistake" is undisputed, such power is not a substitute for the power of review. undisputed, such power is not a substitute for the power of undisputed, such power is not a substitute for the power of

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A review involves a re A review involves a re-examination of the same matter, whereas examination of the same matter, whereas rectification is restricte rectification is restricted to correcting an obvious patent error. In d to correcting an obvious patent error. In the present case, the Ld. CIT(A) had already annulled the the present case, the Ld. CIT(A) had already annulled the the present case, the Ld. CIT(A) had already annulled the assessment. By subsequently inserting a direction to the AO to assessment. By subsequently inserting a direction to the AO to assessment. By subsequently inserting a direction to the AO to initiate proceedings under Section 148, the Ld. CIT(A) has initiate proceedings under Section 148, the Ld. CIT(A) has initiate proceedings under Section 148, the Ld. CIT(A) has fundamentally altered the charac fundamentally altered the character and legal consequence of his ter and legal consequence of his original order—effectively converting a total annulment into a effectively converting a total annulment into a effectively converting a total annulment into a conditional one.

6.2 The learned Departmental Representative (DR) The learned Departmental Representative (DR) The learned Departmental Representative (DR) raised a preliminary objection, contending that the assessee had expressly preliminary objection, contending that the assessee had expressly preliminary objection, contending that the assessee had expressly conceded to the impugned rectification proceedings. To fortify this conceded to the impugned rectification proceedings. To fortify this conceded to the impugned rectification proceedings. To fortify this submission, the ld DR ld DR placed reliance on the assessee’s placed reliance on the assessee’s communication dated communication dated 09.08.2023, as incorporated in the order of , as incorporated in the order of the learned CIT(A), the relevant portion of which is extracted below:: the learned CIT(A), the relevant portion of which is extracted below: the learned CIT(A), the relevant portion of which is extracted below:

“2. Vide letter dated 9.08.2023, the appellant has submitted online 2. Vide letter dated 9.08.2023, the appellant has submitted online 2. Vide letter dated 9.08.2023, the appellant has submitted online as under: With reference to the above subject, we are in receipt of your notice With reference to the above subject, we are in receipt of your notice With reference to the above subject, we are in receipt of your notice initiating proceedings u/s 154 of initiating proceedings u/s 154 of the Act wherein you Honour is the Act wherein you Honour is directing the AO to take remedial action u/s 148 of the Act w.r.t. directing the AO to take remedial action u/s 148 of the Act w.r.t. directing the AO to take remedial action u/s 148 of the Act w.r.t. section 150 of the Act. In this regard we have been instructed to section 150 of the Act. In this regard we have been instructed to section 150 of the Act. In this regard we have been instructed to submit as under: submit as under: As regards our reply is concerned. We have no objection for As regards our reply is concerned. We have no objection for As regards our reply is concerned. We have no objection for amending the app amending the appellate order passed u/s 250 of the Act on ellate order passed u/s 250 of the Act on 16.02.2023 for AY 2013 16.02.2023 for AY 2013-14 to AY 2019-20, however we reserve 20, however we reserve the right to appeal against the order passed pursuant to the right to appeal against the order passed pursuant to the right to appeal against the order passed pursuant to hereinbefore direction. hereinbefore direction. We hope Your Honour will find the above in order. However, we We hope Your Honour will find the above in order. However, we We hope Your Honour will find the above in order. However, we shall be glad to furnish further details/explanation on hearing lad to furnish further details/explanation on hearing lad to furnish further details/explanation on hearing from you.”

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6.3 The Revenue's argument is that the assessee, having once The Revenue's argument is that the assessee, having once The Revenue's argument is that the assessee, having once signaled "no objection" to the proposed rectification, the assessee is signaled "no objection" to the proposed rectification, the assessee is signaled "no objection" to the proposed rectification, the assessee is now precluded from challenging its validity. We find this proposition now precluded from challenging its validity. We find this p now precluded from challenging its validity. We find this p legally untenable. It is a settled principle that there can be no legally untenable. It is a settled principle that there can be legally untenable. It is a settled principle that there can be estoppel against a statute estoppel against a statute. The jurisdiction of an income . The jurisdiction of an income-tax authority to tax a particular item or to rectify an order must be authority to tax a particular item or to rectify an order must be authority to tax a particular item or to rectify an order must be rooted in the four corners of the Act. If an order is otherwise rooted in the four corners of the Act. If an order rooted in the four corners of the Act. If an order without jurisdiction or suffers from a legal infirmity that goes to the without jurisdiction or suffers from a legal infirmity that goes to the without jurisdiction or suffers from a legal infirmity that goes to the root of the matter, the mere concession or acquiescence of the root of the matter, the mere concession or acquiescence of the root of the matter, the mere concession or acquiescence of the assessee cannot clothe the Revenue with the authority to bypass assessee cannot clothe the Revenue with the authority to bypass assessee cannot clothe the Revenue with the authority to bypass the law. The right to be assessed in accorda the law. The right to be assessed in accordance with the law is an nce with the law is an inherent right. A concurrence or admission made by a taxpayer inherent right. A concurrence or admission made by a taxpayer inherent right. A concurrence or admission made by a taxpayer under a mistaken belief does not operate as a waiver of the under a mistaken belief does not operate as a waiver of the under a mistaken belief does not operate as a waiver of the fundamental requirement that the ld CIT(A) must act strictly within fundamental requirement that the ld CIT(A) must act strictly within fundamental requirement that the ld CIT(A) must act strictly within the ambit of Section 154 Section 154 of the Act. The doctrine of estoppel may be ctrine of estoppel may be applicable to decisions on questions of fact, but it cannot be applicable to decisions on questions of fact, but it cannot be applicable to decisions on questions of fact, but it cannot be invoked to defeat the provisions of a statute. Consequently, the no invoked to defeat the provisions of a statute. Consequently, the no invoked to defeat the provisions of a statute. Consequently, the no objection recorded in the assessee’s letter dated 09.08.2023 cannot objection recorded in the assessee’s letter dated 09.08.2023 cannot objection recorded in the assessee’s letter dated 09.08.2023 cannot bind the assessee to a position bind the assessee to a position that is contrary to the legal that is contrary to the legal framework. We, therefore, find no merit in the contention of the framework. We, therefore, find no merit in the contention of the framework. We, therefore, find no merit in the contention of the learned DR and proceed to adjudicate the matter on its legal merits. learned DR and proceed to adjudicate the matter on its legal merits. learned DR and proceed to adjudicate the matter on its legal merits.

6.4 We further observe that, in the present appeal, it is not the We further observe that, in the present appeal, it is not the We further observe that, in the present appeal, it is not the case of the Revenue that case of the Revenue that the learned CIT(A) had issued any show the learned CIT(A) had issued any show cause notice during the course of the original appellate proceedings cause notice during the course of the original appellate proceedings cause notice during the course of the original appellate proceedings

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and inadvertently omitted to adjudicate upon the same in the and inadvertently omitted to adjudicate upon the same in the and inadvertently omitted to adjudicate upon the same in the appellate order. On the contrary, the notice seeking to invoke appellate order. On the contrary, the notice seeking to invoke appellate order. On the contrary, the notice seeking to invoke Section 150 has been iss Section 150 has been issued only in the course of proceedings ued only in the course of proceedings under Section 154. In these circumstances, we find considerable In these circumstances, we find considerable merit in the contention of the assessee that a direction under merit in the contention of the assessee that a direction under merit in the contention of the assessee that a direction under Section 150(1) must be one which is necessary for the disposal of Section 150(1) must be one which is necessary for the disposal of Section 150(1) must be one which is necessary for the disposal of the appeal and is rendere the appeal and is rendered at the stage of the original adjudication d at the stage of the original adjudication itself. Such a direction cannot be introduced subsequently, by way Such a direction cannot be introduced subsequently, by way Such a direction cannot be introduced subsequently, by way of recourse to Section 154, as an afterthought to salvage the of recourse to Section 154, as an afterthought to salvage the of recourse to Section 154, as an afterthought to salvage the position of the Revenue once the assessment has been declared position of the Revenue once the assessment has been declared position of the Revenue once the assessment has been declared void. The exercise undertaken by the learned CIT(A), in the garb of The exercise undertaken by the learned CIT(A), in the garb of The exercise undertaken by the learned CIT(A), in the garb of rectification, clearly travels beyond the limited scope of Section 154. rectification, clearly travels beyond the limited scope of Section 154. rectification, clearly travels beyond the limited scope of Section 154. What is sought to be done is not a mere correction of an apparent What is sought to be done is not a mere correction of an apparent What is sought to be done is not a mere correction of an apparent error, but a substantive modification of the appellate order, a error, but a substantive modification of the appellate o error, but a substantive modification of the appellate o course of action for which there is no course of action for which there is no statutory authorization. statutory authorization. Equally devoid of merit is the reliance placed on Sections 292B and Equally devoid of merit is the reliance placed on Sections 292B and Equally devoid of merit is the reliance placed on Sections 292B and 292BB to sustain the impugned action, as the said provisions 292BB to sustain the impugned action, as the said provisions 292BB to sustain the impugned action, as the said provisions cannot be invoked to cure a jurisdictional defect or to legitimise an cannot be invoked to cure a jurisdictional defect or to cannot be invoked to cure a jurisdictional defect or to otherwise impermissible exercise of power. otherwise impermissible exercise of power.

6.5 The Ld. CIT(A) having become The Ld. CIT(A) having become functus officio functus officio regarding the merits of the case, the attempt to rewrite the conclusion of the merits of the case, the attempt to rewrite the conclusion of the merits of the case, the attempt to rewrite the conclusion of the appellate order to include a fresh jurisdictional direction is legally appellate order to include a fresh jurisdictional direction is legally appellate order to include a fresh jurisdictional direction is legally unsustainable. As per the settled principle in CIT v. Aiswarya CIT v. Aiswarya unsustainable. As per the settled principle in

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Trading Co. (1997) 225 ITR 738 (ker) (1997) 225 ITR 738 (ker), Section 154 Section 154 cannot be used as a "cloak for review." as a "cloak for review."

6.6 Consequently, we hold that the impugned rectification order Consequently, we hold that the impugned rectification order Consequently, we hold that the impugned rectification order constitutes an impermissible review o constitutes an impermissible review of a concluded appellate f a concluded appellate decision and is, therefore, decision and is, therefore, ultra vires the powers vested under the powers vested under Section 154. The same is hereby quashed. Section 154. The same is hereby quashed.

6.7 The grounds of appeal of the assessee are accordingly allowed. he grounds of appeal of the assessee are accordingly allowed. he grounds of appeal of the assessee are accordingly allowed.

Order pronounced in the open Court on ounced in the open Court on 28/04/2026. /04/2026. Sd/- Sd/ Sd/- (ANIKESH BANERJEE ANIKESH BANERJEE) (OM PRAKASH KANT OM PRAKASH KANT) JUDICIAL MEMBER JUDICIAL MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER Mumbai; Dated: 28/04/2026 Rahul Sharma, Sr. P.S. Copy of the Order forwarded to Copy of the Order forwarded to : 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. BY ORDER, BY ORDER, //True Copy// (Assistant Registrar) (Assistant Registrar) ITAT, Mumbai ITAT, Mumbai