Rectification Order passed u/s 154 of Income Tax Act without Proper Verification: ITAT directs Re-Adjudication [Read Order]

The New Delhi bench of the Income Tax Appellate Tribunal ( ITAT) directed re-adjudication for the rectification order passed under section 154 of the Income Tax Act, 1961 without proper verification. 

Inter Globe Air Transport, the appellant assessee was operating as a general sales agent of international and domestic passengers and cargo operations. The assessee appealed against the rectification order passed by the assessing officer under section 154 of the Income Tax Act. 

The assessee filed its revised return of income and the return filed by the assessee was processed under section 143(1) of the Income Tax Act, 1961 wherein adjustments were made and some addition made by the assessing officer in the original assessment and passed the order under section 154 of the Income Tax Act. 

Somya Jain, the counsel for the assessee contended that the scrutiny assessment in the case of the applicant for the captioned year was completed and issued under section 143(3) of the Income Tax Act (‘original assessment order’) after making various additions by the assessing officer and in the original assessment order, the adjustments made in the intimation issued under section 143(1) of the Income Tax Act were not imputed. 

It was also submitted that the appeal filed by the assessee for the dismissal of an appeal against the rectification order by the Commissioner of Income Tax(Appeals) was against the law. 

R. S. Yadav, the counsel for the revenue department contended that the original assessment order was already decided according to the Direct Tax Vivad se Vishwas Act, 2020. It was also submitted that the appeal against the original assessment order passed under section 143(3) of the Income Tax Act was the one that was settled under the said Act and not the appeal against the rectification order. 

The two-member bench comprising Saktijit Dey ( Judicial) and Dr. B. R. R. Kumar, (Accountant) held that the dismissal of the appeal by the Commissioner of Income Tax (Appeals) against the rectification order was not per the law. The bench also directed the matter for re-adjudication while allowing the appeal filed by the assessee. 

To Read the full text of the Order CLICK HERE

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