Case Law Details
Dariyav Singh Vs ITO (ITAT Delhi)
Income Tax Appellate Tribunal (ITAT) Delhi case, Dariyav Singh Vs ITO, has raised important questions regarding the hierarchy of authority and responsibilities within the tax department. The core of the issue is the question of whether the Assessing Officer (AO) has the power to rectify a mistake made by the Principal Commissioner of Income Tax (PCIT) in form no. 5 under the Vivad Se Vishwas Scheme (VSVS Scheme).
The appellant, Dariyav Singh, contended that the AO lacked the authority to rectify or modify form no. 5 issued by the PCIT. According to the hierarchy of the department, it was argued, such a rectification is invalid and unsustainable as per the Act’s provisions. This argument came after the AO rectified a tax calculation mistake in form no. 5 by invoking section 154 of the Act.
The ITAT, after examining the presented evidence and arguments, concurred with the appellant. The Tribunal found no provision empowering the AO to invoke section 154 of the Act to rectify an error made by a super senior officer, i.e., the PCIT.
Conclusion: This case serves as a significant precedent regarding the powers of different roles within the income tax department’s hierarchy. The ITAT held that the AO was not validly entitled or empowered to rectify a mistake made by the PCIT. Consequently, the impugned rectification order was deemed to be without jurisdiction, invalid, and unsustainable, setting an important precedent for future cases. The judgement underscores the importance of respecting hierarchical structures and powers within the Indian tax system.
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