ITO, NEW DELHI vs. M/S. RANGI INTERNATIONAL PVT. LTD., NEW DELHI

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ITA 4131/DEL/2013Status: DisposedITAT Delhi26 July 20164 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that once the original assessment order merges with the appellate order of the CIT(A), the AO loses the jurisdiction to pass a rectification order. Therefore, the rectification order was not sustainable in law.

What were the facts?

The Assessing Officer (AO) passed an order creating a demand for short deduction of tax and interest. This order was challenged before the CIT(A), who disposed of the appeal. The AO then passed a rectification order under Section 154/155, which the CIT(A) quashed.

What were the issues?

Whether the AO is competent to pass a rectification order after the original assessment order has merged with the appellate order of the CIT(A)?

Which sections of the Income-tax Act were involved?

Section 154,Section 155,Section 201,Section 201A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘F’ : NEW DELHI

Before: SHRI J.S. REDDY & SHRI KULDIP SINGH

For Appellant: Shri Ankit Saini, CA
For Respondent: Shri Anil Kumar Sharma, Senior DR
Hearing: 21.07.2016

PER KULDIP SINGH, JUDICIAL MEMBER :

1.

The aforesaid inter-connected appeals raising identical question of law and facts are taken up together for disposal by way of consolidated order in order to avoid the repetition of discussion.

2.

The Appellant, Income-tax officer, Ward 51 (2),, New Delhi (hereinafter referred to as ‘the revenue’) by filing the aforesaid appeals sought to set aside the impugned order dated 18.04.2013 passed by the Commissioner of Income-tax (Appeals)-XXX, New Delhi qua the Financial Years 2002-03, 2003-04, 2004-05 and 2005-06 on the ground that :-

“The Ld. CIT (A) has erred in law as well as on facts of the case by quashing the order passed u/s 154/155 of the I.T. Act after holding that the original order which is rectified has already merged with the order of the CIT (A) dated 26.09.2006 even though the original order has been confirmed by the CIT (A) in first appeal.”

3.

Briefly stated the facts of this case are : initially the Assessing Officer passed a consolidated order dated 19.06.2006 under section 201/201A of the Income-tax Act, 1961 (for short ‘the Act’) pertaining to the aforesaid appeals qua Financial Years 2002- 03 to 2005-06 and created a demand of Rs.86,68,141/- on account of short deduction of tax and corresponding interest amounting to Rs.35,47,048/- (total demand Rs.1,22,13,189/-). The aforesaid order was challenged before the CIT (A) who has disposed off the appeal vide order dated 26.09.2006 against the assessee. AND the order dated 26.09.2006 passed by CIT (A) has been challenged and pending disposal before the Tribunal.

4.

The AO resorted to the rectification of his order dated 19.06.2006 by passing an order u/s 154/155 of the Act dated 19.03.2010 which stood already quashed by CIT (A) vide order dated 26.09.2006.

5.

Feeling aggrieved, the revenue has come up before the Tribunal by way of challenging the impugned order passed by ld. CIT (A).

6.

We have heard the ld. Authorized Representatives of the parties to the appeal, gone through the documents relied upon and orders passed by the revenue authorities below in the light of the facts and circumstances of the case.

7.

In the backdrop of the aforesaid facts and circumstances of the case, the sole question arises for determination in this case is :-

“as to whether the AO was competent / empowered to rectify the assessment order u/s 154/155 of the Act vide order dated 19.03.2010 when the assessment order itself stood merged with the order dated 26.09.2006 passed by CIT (A)?”

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