Notice Mandatory to Pass Rectification Order U/s. 154

The principle of natural justice was not followed by the Assessing Officer while rectifying the original assessment order and the said fact was admitted by the CIT(A). It is not proper to improve the Assessing Officer’s defect by the CIT(A) which is not permissible under the Income-Tax statute wherein the notice has to be given to the assessee when there is an increase in tax liability on the assessee. The reliance upon the Apex Court judgment in case of Chockalingam & Meyyappan Vs. CIT (1963) 48 ITR 34 by the Ld. AR is precisely holding that principle of natural justice has to be follow...