NAVJIVAN SHIKSHAN PRASARAK MANDAL,YAVATMAL vs. ITO WARD-4, EXEMP, NAGPUR, NAGPUR

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ITA 107/NAG/2026Status: DisposedITAT Nagpur16 June 2026AY 2018-194 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the CIT(A) exceeded the scope of Section 154 by correcting its previous order. Ignorance of a Board Circular or reliance on judicial precedent for granting relief does not constitute an 'error apparent from record'.

What were the facts?

The assessee's appeal was filed with a delay of 3 days, which was condoned. The CIT(A) initially dismissed the appeal due to delay but later passed an order under Section 154 correcting its own order, citing a CBDT circular that contradicted its earlier relief.

What were the issues?

Whether the CIT(A) erred by using Section 154 to rectify an order where the correction was based on a change in interpretation of a circular and not a clear mistake in the original order.

Which sections of the Income-tax Act were involved?

Section 154,Section 250,Section 11

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, NAGPUR BENCH :: NAGPUR

For Appellant: Shri Mahavir Atal, CA &, Shri Swetanshu Dev, Advocate
For Respondent: Shri Surjit Kumar Saha, Sr.DR
Hearing: 16.06.2026Pronounced: 16.06.2026

PER ANUBHAV SHARMA, JM:

This appeal filed by the assessee is directed against the order of ADDL/JCIT (Appeals)-1, Surat (for short, “CIT(A)”), dated 28/02/2025 passed under section 154 r.w.s. 250 of the Income Tax Act, 1961 (for short, “Act”) for the Assessment Year (AY) 2018-19.

2.

On hearing both the sides, we find that the appeal is filed with delay of 03 days for which application for condonation of delay has been filed explaining the reasons. We are satisfied that the delay is not of substantial period, the same is condoned.

3.

Further, we find that assessee has filed appeal against the order passed u/s. 154 of the Act by the Ld.CIT(A) wherein Ld. CIT(A) has found that its own order dated 28.11.2024 to be suffering from error apparent from record and the impugned order was passed.

4.

We find that while passing order dated 28.11.2021, Ld. CIT(A) in para 4.6 had dismissed the appeal of the assessee being filed with delay of 130 days. At the same time, in para 5 and sub-paras thereof, Ld. CIT(A) has given the assessee relief on merits wherein the issue involved was the delay in filing of audit report in Form 10B and the Ld.CIT(A) had observed that this requirement is directory and the claim u/s. 11 should not be disallowed by the CPC merely on the basis of delay in filing of Form 10B. 2

5.

Subsequently, while passing the impugned order u/s. 154 of the Act, Ld. CIT(A) has concluded that in the light of CBDT Circular No. 16/2024, dated 18.12.2024, the delay could not have been condoned.

6.

Though, Ld. Departmental Representative (DR) has heavily relied the impugned order, we are of the considered view that Ld. CIT(A) has gone beyond the scope of section 154 of the Act to consider the order dated 28.11.2024 to be suffering from an error apparent on record wherein while relying judicial precedent of Ahmedabad Bench in the case of Shardaben Education Trust vs. ITO (ITA No. 2312/Ahd/2018), the assessee was given relief. We are of the considered view that ignorance of Board Circular and reliance on judicial precedent to give relief to the appellant by Ld. CIT(A) cannot be a case of error apparent on record to be corrected by virtue of provisions of section 154 of the Act.

7.

In the light of the aforesaid facts and circumstances, we sustain the grounds. Appeal of the assessee is allowed.

Order pronounced in open Court on 16.06.2026

sd/- sd/- ANUBHAV SHARMA KHETTRA MOHAN ROY ACCOUNTANT MEMBER JUDICIAL MEMBER

Nagpur: Dated: 16/06/2026 vr/- Copy to: 1. The Assessee 2. The Revenue 3. The Pr.CIT concerned. 4. The DR, ITAT, Nagpur 5. Guard file. By order Vukkem Digitally signed by Vukkem Rambabu Rambabu Date: 2026.06.17 13:23:36 +05'30' Senior Private Secretary ITAT, Nagpur

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