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2019 (5) TMI 26 - AT - Income TaxRectification u/s 154 - CIT(A) deciding appeal for AY 2005-06 make observation that addition of ₹ 26.44 lakhs should be made in the year of receipt i.e. Asstt.Year 2004- 05 - AO while giving effect of order order of CIT(A) added the same in Asstt.Year 2004- 05 - assessee filed rectification application against above order - ex parte order - scope of debatable issue - HELD THAT:- When the assessee came to know about this order, he filed an application for rectification. His application cannot be thrown out like this, and the CIT(A) failed to note this aspect while confirming the view point of the AO. AO has observed in the impugned order dated 14.8.2015 that he has given effect to the order of the CIT(A) passed in the Asstt.Year 2004-05 also, though, it was passed in the Asstt.Year 2005-06. Had the AO entertained his rectification application and proceeded to dispose of in accordance with law, then, he would have vacated his order dated 9.3.2015 passed in the Asstt.Year 2004-05. There is no debatable issue in that, rather his order dated 9.3.2015 was patently illegal. AO ought to have entertained the application of the assessee, and ought to have rectified his order dated 9.3.2015. Therefore, we allow this appeal and set aside both the impugned orders i.e. order dated 1.9.2016 passed by the CIT(A) and dated 14.8.2015 passed by the AO. We allow the application of the assessee and direct the AO to rectify his order dated 9.3.2015 by deleting the amount of ₹ 26.44 lakhs from the taxable income of the assessee in the Asstt.Year 2004-05. Appeal of the assessee is partly allowed.
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