ASHOK KUMAR,JAIPUR vs. ITO WARD-1, CHURU, CHURU

We have heard the rival submissions and perused the material available on record. The Ld. AR contended that the Ld. CIT(A) had passed an order under section 250 of the Act on 29/11/2024, setting aside the impugned assessment 2 ITA 14/Jodh/2025 Ashok Kumar order which had been passed under sections 144/147 of the Act on 18/12/2018, by exercising powers conferred under section 251(1)(a) of the Act. Subsequently, however, the Ld. CIT(A) passed another order dated 05/12/2024 under section 154 read with section 250 of the Act, whereby he purported to amend the earlier appellate order dated 29/11/2024, and in doing so, dismissed the appeal of the assessee. The Ld. AR submitted that such action of the Ld. CIT(A) amounts to a change of decision under the garb of rectification, which is not permissible under section 154 of the Act. It was argued that rectification under section 154 can only be resorted to for correction of a mistake apparent from the record, and not for review or alteration of a concluded decision.

On consideration, we find merit in the contention of the Ld. AR. The rectification order passed under section 154 r.w.s. 250 is wholly unjustified, as it travels beyond the limited scope of rectification contemplated by law. The Ld. DR did not raise any serious objection to the observations of the Bench. Accordingly, we quash the rectification order dated 05/12/2024 passed by the Ld. CIT(A). Consequently, the impugned assessment order is set aside to the file of the Ld. AO for adjudication de novo. Since the issue was purely legal in nature, and the Ld. AR did not advance any argument on merits, we refrain from expressing any opinion on the merits of the case. Needless to say, in the set-aside proceedings, the assessee shall be afforded reasonable opportunity of being heard. Correspondingly, the assessee is expected to remain diligent and cooperative in the fresh assessment proceedings.