HEMANT KUMAR ARORA,DELHI vs. ITO,WARD-62(1), DELHI

Heard both the parties at length. Case file perused.

It emerges at the outset that there arises a very serious issue of maintainability of the assessee’s instant appeal itself. This is for the precise reason that the learned Assessing Officer had framed his section 147 r.w.s. 144B assessment in his case on 23.03.2022 assessing total income as Rs.48,77,713/- which included unexplained cash credits addition u/s 68 to the tune of Rs.38,46,773/-. The assessee thereafter appears to have filed Hemant Kumar Arora 2 his rectification u/s 154 of the Act that his correct taxable income of Rs.48,77,713/- hereinabove had been wrongly taken as Rs.1,16,49,194/- whilst of determining the tax liability in question. The assessee himself is very fair in filing on record the learned Assessing Officer’s rectification dated 24.06.2022 accepting the same.

Now comes the dispute between the parties. The assessee admittedly chose to file his appeal before the CIT(A)/NFAC against the above rectification dated 24.06.2022. Mr. Sampath vehemently submits that the assessee infact had set into motion the lower appellate mechanism against the original assessment order passed on 23.03.2022 than the above section 154 rectification hereinabove dated 24.06.2022; and, therefore, the learned lower appellate authority has erred in law and on facts is not entertaining his legal grounds challenging validity of the impugned reopening. The facts on record; however, speak otherwise. A perusal of the assessee’s Form 35 in the instant case file indicates that he had infact filed his lower appeal against section 154 rectification dated 24.06.2022 than the Assessing Officer’s assessment finalized on 23.03.2022. This being the clinching factual position, I hereby quote T. S. Balaram, ITO vs. Volkart Bros. (1971) 82 ITR 40 (SC) that scope of a rectification appeal u/s 154 of Act is not to be delve in detailed roving enquiries as such a Hemant Kumar Arora 3 reopening is independently appealable u/s 246A(1) of the Act. I accordingly uphold the CIT(A)/NFAC’s lower appellate findings refusing to entertain the assessee’s legal ground(s) challenging validity of the impugned reopening u/s 154 appeal in very terms. Ordered accordingly.

No other ground or argument has been pressed before us.

This assessee’s appeal is dismissed. Order Pronounced in the Open Court on 22/04/2025. (Satbeer Singh Godara)