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2016 (11) TMI 361 - AT - Income TaxRectification of mistake - Held that:- There is a contradiction on basic facts. Where the Assessing Officer in the order passed u/s 143(3) and the order u/s 154 holds that the return declaring an income of ₹ 96,540/- was filed by the assessee. The CIT(A) holds that the NIL return had been filed. Accordingly in order to address the legal position it is first necessary to address the correct facts. As far as the legal issue as laid down in CIT vs Punjab National Bank (2001 (2) TMI 126 - DELHI High Court ) relied upon is concerned, law is clear that once proceedings u/s 143(2) have been initiated, rectification of intimation u/s 143(1) is not permissible. If any Rectification was to be effected in the intimation it can be done u/s 143(3) and not by exercising power u/s 154. Accordingly the issue is restored back to the CIT(A) with the direction to first address the correct facts as the facts noticed by the CIT(A) in the impugned order do not reconcile with the consistent findings of the AO in the 143(3) order and the 154 order. After addressing the correct factual position, the CIT(A) is directed to pass a speaking order in accordance with law after giving the assessee a reasonable opportunity of being heard.
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