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2022 (7) TMI 1406 - AT - Income TaxRectification u/s 154 - whether the AO while taking refuge of section 154 has rightly passed second order on the same application for rectification of the order which has already been decided on merit? - HELD THAT:- Section 154 of the Act mandates that an amendment, which has the effect of enhancing an assessment or reducing a refund or otherwise increasing the liability of the Assessee or (the deductor) or (the collector), shall not be made under this section unless the authority concerned has given notice to the person(s) referred above of its intention to doso and has allowed a reasonable opportunity of being heard. The rule of ‘Audi laterampartem’ says ‘hear the other side’. If the order is passed by the authority without providing notice or the reasonable opportunity of being heard to the person affected by it, if mandatorily required under the statute, then the same would be invalid and liable to be set aside. Coming to the instant case, from the record and order u/s 154 of the ACT, it clearly appears that the AO has neither given any notice to the Assessee qua its intention to do such amendment, which has the effect of enhancing or reducing a refund or otherwise increasing the liability of the Assessee, nor provided any opportunity of being heard to the Assessee, while passing an order u/s. 154 of the Act, hence dents the roots of the case. On the aforesaid analyzations, we are of the considered view that the order u/s. 154 of the Act by the AO, is unsustainable being invalid and void ab initio.
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