HITECH FLYASH INDIA PRIVATE LIMITED,TUTICORIN vs. ASSISTANT COMMISSIONER, TIRUNELVELI

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ITA 3966/CHNY/2025Status: DisposedITAT Chennai09 June 2026AY 2016-173 pages
AI SummaryDismissed

What did the Tribunal hold?

The tribunal held that proceedings under section 154 are limited to rectifying apparent mistakes and do not allow for reopening the merits of the original assessment order. Since the original assessment order was not challenged, the addition cannot be questioned indirectly.

What were the facts?

The assessee did not challenge the original assessment order passed under section 147 of the Income-tax Act, 1961, which included an addition of Rs. 54,00,000. The current appeal arises from a rectification order passed under section 154.

What were the issues?

Whether an assessee can challenge the merits of an original assessment order in an appeal arising from a rectification order under section 154 when the original order was not challenged.

Which sections of the Income-tax Act were involved?

Section 147,Section 144B,Section 154,Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘B’ BENCH: CHENNAI

Before: SHRI INTURI RAMA RAO & SHRI MANU KUMAR GIRI

Hearing: 06.05.2026

आदेश / O R D E R

PER MANU KUMAR GIRI, JM:

The captioned appeal filed by the Assessee is directed against the order passed by the Commissioner of Income Tax (Appeals), [hereinafter referred to as “CIT(A)”], ADDL/JCIT (A)-1, Pune, dated 24.10.2025 for the Assessment Year 2016-17.

ITA No 3966/Chny/2025 (AY 2016-17) Hitech Flyash India Pvt Ltd. Vs ACIT :: 2 :: 2. The brief chronology of events leading to the present appeal is as under: - Date Events 10.10.2018 Assessment order passed u/s. 143(3) of the Income-tax Act, 1961 pursuant to limited scrutiny under CASS. 26.06.2021 Assessment reopened u/s. 147 by issuance of notice u/s. 148 of the Act. - Assessment order passed u/s. 147 read with section 144B of the Act, wherein an addition of Rs.54,00,000/- was made. 13.07.2023 Rectification order passed by the Assessing Officer u/s. 154 of the Act. 24.10.2025 Order passed by the CIT(A) u/s. 250 of the Act.

3.

We have considered the material available on record and the submissions of the parties. From the above chronology, it is evident that the assessee did not challenge the assessment order passed u/s. 147 read with section 144B of the Act, whereby an addition of Rs.54,00,000/- was made by the Assessing Officer. The assessment order thus attained finality. 4. The present appeal emanates from the rectification order passed u/s. 154 of the Act dated 13.07.2023. The scope of proceedings u/s. 154 is limited to rectification of mistakes apparent from the record. In an appeal arising from such rectification proceedings, the assessee cannot be permitted to assail or reopen the merits of the original assessment order which was never challenged in accordance with law. 5. Since the assessee failed to avail the statutory remedy against the assessment order passed u/s. 147 read with section 144B of the

ITA No 3966/Chny/2025 (AY 2016-17) Hitech Flyash India Pvt Ltd. Vs ACIT :: 3 :: Act, the addition of Rs.54,00,000/- cannot now be questioned indirectly in proceedings arising from the rectification order u/s. 154 of the Act. No independent cause of action concerning the said addition arises from the rectification order under challenge. 6. In view of the foregoing discussion, we find no merit in the appeal of the assessee. The grounds raised by the assessee are not maintainable in the present proceedings and are accordingly dismissed. 7. In the result, the appeal filed by the assessee is dismissed. Order pronounced in the open court on the 09th day of June 2026, in Chennai.

Sd/- Sd/- (इंतूरी रामा राव) (मनु कुमार िग�र) (INTURI RAMA RAO) (MANU KUMAR GIRI) लेखा सद*य/ACCOUNTANT MEMBER �या�यक सद*य/JUDICIAL MEMBER

चे�नई/Chennai, +दनांक/Dated: 09th June, 2026. SNDP, Sr. PS आदेश क� �त,ल-प अ.े-षत/Copy to: 1. अपीलाथ�/Appellant 2. ��थ�/Respondent 3. आयकरआयु�/CIT, Chennai / Madurai / Salem / Coimbatore. 4. िवभागीय�ितिनिध/DR 5. गाड�फाईल/GF

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