ITO Vs Rajkumari (ITAT Chennai)
ITAT Chennai held that corrigendum issued by AO to rectify the mistake made while issuing original assessment order is legal and valid. Accordingly, matter remanded back to CIT(A) for adjudication on merits.
Facts- The case of the assessee was selected for scrutiny assessment under CASS and accordingly, notices u/s.143(2) & 142(1) of the Act were issued. Vide the assessment order dated 20.12.2019 passed u/s.143(3) of the Act, the AO accepted the returned income at Rs.6,37,862/-. One fact here is to be noted that the assessee in her return of income filed admitted total income at Rs.3.25 lakhs and not the returned income noted by the AO at Rs.6,37,862/- in the assessment order.
Subsequently, the AO issued corrigendum i.e., corrigendum for assessment order u/s.143(3) and the corrigendum was dated 21.12.2019. Here, AO computed the assessed income at Rs.2,28,54,344/- by making an addition of Rs.2,25,29,344/- under various heads. The assessee challenged the corrigendum passed by the AO to the order u/s.143(3) dated 21.12.2019 before CIT(A). CIT(A) allowed the appeal. Being aggrieved, the present appeal is filed by the revenue.
The only issue in this appeal of Revenue is as regards to the order of CIT(A) holding that the AO has no power either to withdraw or modify or substitute one assessment order passed by him earlier with another assessment order.
