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

ITA 14/JODH/2025

AI Insights

The case involves Ashok Kumar, the appellant, contesting an order from the National Faceless Appeal Centre (NFAC), Delhi, which was initially set aside by the Ld. CIT(A) but later reinstated through a rectification order. The rectification was challenged on the grounds that it improperly altered a previous decision under the guise of correction, which is not permissible under section 154 of the Income-tax Act. The Tribunal agreed with the appellant's contention, leading to the quashing of the rectification order and setting aside the assessment for a fresh review.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 717200 (ITAT-JODHPUR)
• Duration Of Justice: 7 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2016-2017
• Appeal Filed On: 02-01-2025
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASSESSEE SHRIR.S. POONIA; REVENUE BRIJ LAL MEENA
• Keywords: Set aside; Opportunity of being heard; Rectification of order
• Section: 154

Judgement Text

"1 ITA 14/Jodh/2025 Ashok Kumar IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH, JODHPUR BEFORE DR. MITHA LAL MEENA, HON’BLE ACCOUNTANT MEMBER AND SHRI ANIKESH BANERJEE, HON’BLE JUDICIAL MEMBER I.T.A No.14/Jodh/2025 (Assessment Yar: 2016-17) Ashok Kumar C/o R.S. Poonia, D-82B, Siwad Area, Krishna Marg, Bapu Nagar, Jaipur-302 015 PAN: FESPK3689J vs ITO, Ward-1, Churu, Rajasthan APPELLANT RESPONDENT Date of hearing 20/08/2025 Date of pronouncement 21/08/2025 O R D E R Per Bench: The instant appeal of the assessee was filed against the order of theNational Faceless Appeal Centre (NFAC), Delhi [for brevity, ‘Ld.CIT(A)’]order passed under section 250 of the Income-tax Act, 1961 (in short, ‘the Act’),for A.Y. 2016-17, date of order 05/12/2024. The impugned order was emanated from the order of the Ld.ITO, Ward-1, Churu, passed under section 144/147, date of order 18/12/2018. 2. 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 Present for Assessee ShriR.S. Poonia, CA Present for Revenue Shri Brij Lal Meena, Addl.CIT-DR Printed from counselvise.com 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. 3. 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. Printed from counselvise.com 3 ITA 14/Jodh/2025 Ashok Kumar 4. In the result, the appeal of the assessee bearing ITA No.14/Jodh/2025 is allowed for statistical purpose. Order pronounced in the open court on 21st August, 2025 Sd/- sd/- (DR.MITHA LAL MEENA) (ANIKESH BANERJEE) ACCOUNTANT MEMBER JUDICIAL MEMBER Jodhpur, Dt : 21 August, 2025 Pavanan Copy of the Order forwarded to: 1. अपीलाथŎ/The Appellant , 2. Ůितवादी/ The Respondent. 3. आयकरआयुƅ CIT 4. िवभागीयŮितिनिध, आय.अपी.अिध., मुबंई/DR, ITAT, Jodhpur 5. गाडŊफाइल/Guard file. BY ORDER, //True Copy// (Asstt. Registrar), ITAT, Jodhpur Printed from counselvise.com 4 ITA 14/Jodh/2025 Ashok Kumar Printed from counselvise.com "