Ashok Kumar Vs ITO (ITAT Jodhpur)
Rectification Cannot Become Review – Change of Opinion Cannot Be Masked as Rectification- CIT(A)’s Rectification Order Quashed & Matter Restored to AO
Jodhpur ITAT has held that CIT(A) cannot change or reverse his own appellate decision under the garb of rectification. Tribunal quashed the rectification order passed u/s 154 read with section 250 & restored the matter to AO for fresh adjudication.
Assessment in the case of Assessee was originally completed u/s 144/147 on 18.12.2018. Assessee carried the matter in appeal before CIT(A). By an order dated 29.11.2024, appellate authority exercised powers u/s 251(1)(a) & set aside the assessment order to the file of AO for de novo adjudication. Surprisingly, within a week, CIT(A) passed another order dated 05.12.2024 u/s 154 read with section 250, whereby he purported to “rectify” his earlier decision, & instead dismissed assessee’s appeal.
Tribunal observed that Assessee had contended that CIT(A) had passed an order u/s 250 on 29/11/2024, setting aside the impugned assessment order which had been passed u/s 144/147 on 18/12/2018, by exercising powers conferred u/s 251(1)(a). Subsequently, however, CIT(A) passed another order dated 05/12/2024 u/s 154 read with section 250, whereby he purported to amend the earlier appellate order dated 29/11/2024, & in doing so, dismissed the appeal of Assessee. Assessee submitted that such action of CIT(A) amounts to a change of decision under the garb of rectification, which is not permissible u/s 154. It was argued that rectification u/s 154 can only be resorted to for correction of a mistake apparent from the record & not for review or alteration of a concluded decision.
