Santilal Beni Gupta Vs ITO (ITAT Mumbai)
Heading: Appeal Held Not Maintainable – Rectification Order U/s 154 Cannot Be Used to Challenge Original Addition – ITAT Mumbai
Assessee challenged order passed u/s 154 wherein AO had only rectified tax computation as per law; however the assessee did not challenge validity of the original assessment order or the addition of ₹10 lakh made u/s 69A. Before ITAT, no one appeared on behalf of assessee despite repeated opportunities and earlier adjournments, hence the matter was decided ex-parte.
Tribunal observed that rectification proceedings u/s 154 are limited to correcting apparent mistakes and cannot be used as a forum to dispute the merits of additions made in original assessment. Since assessee failed to challenge original addition at the appropriate stage and appeal was directed only against rectification order, CIT(A) rightly held that the appeal itself was not maintainable. Finding no infirmity in CIT(A)’s order, ITAT upheld the dismissal and rejected assessee’s grounds. Appeal dismissed.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
The present appeal has been filed by the assessee challenging the impugned order 17.09.2025 passed u/s 250 of the Income Tax Act, 1961 (‘the Act’), by the National Faceless Appeal Centre, Delhi (NFAC) for the assessment year 2017-18. The following grounds are reproduced below:
“1) That the learned Assessing Officer erred in adding of Rs. 10,00,000 under section 69A of the Income Tax Act, 1961
2) The appellant craves leaves to add, amend, alter, delete all or any of the forgoing ground of appeal.”
2. None appeared on the behalf of assessee when the case was called repeatedly. From the case file we noticed that even on the previous occasions assessee had sought adjournments on one or the other ground but ultimately failed to appear even today before the Bench.
