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2018 (12) TMI 122 - ITAT DELHICharitable activity - assessee fails to qualify as an organization for charitable purpose - rectification of mistake u/s 154 - Held that:- It is clear from the order u/s 143(3) of the Act that the learned AO did not refer to the entire activities of the assessee in respect of its units but there is a specific reference to CIRT, Pune and its activities. Ultimately, the surplus attributable to CIRT, Pune to the tune of ₹ 63,15,340/- was brought to tax. As observed in T.S. Balram vs Volkart Bros. (1971 (8) TMI 3 - SUPREME COURT) and CIT vs. Sheshasayee Paper and Boards Ltd. (2006 (1) TMI 75 - MADRAS HIGH COURT) the debatable issue does not fall under the purview of Section 154 of the Act and also the long drawn process of reasoning on points on which there could be two opinions, by resorting to Section 154 of the Act is impermissible. With this view of the matter, we are of the considered opinion that the order of the learned CIT(A) in quashing the order u/s 154 of the Act does not suffer any illegality or irregularity and it does not warrant any interference by this Tribunal. We, therefore, uphold the order of the learned CIT(A) in quashing the order u/s 154. The assessee does not stand to gain by withdrawal of the appeal and getting it dismissed as withdrawn, simply because the result in the appeal preferred against the order u/s 154/143(3) does not wipe out the liability of the assessee under the order u/s 143(3) of the Act. Further when the technical consideration is pitted against the delivery of substantial justice, it is a settled principle of law that the former must give way to the latter. Above all, by affording an opportunity to the assessee, the highest that would happen is that a cause could be decided on merits. Since the learned CIT(A) had not considered the case of the assessee on merits, we are of the considered opinion that it is a fit case to set aside the impugned order and remand the matter back to the file of the learned CIT(A) for disposing it off on merits.
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