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2022 (10) TMI 941 - AT - Income TaxRectification of mistake - rectification or the typographical error in the assessment order - Unexplained cash deposits - estimation of GP - doctrine of merger - AR also submitted that the order passed by the Assessing Officer u/s 143(3) of the Act got merged with the order passed after giving effect to the rectification order passed - case was selected for Scrutiny through CASS for examining the issue i.e. "High risk transactions (PAN reported in STR) - whether appeal filed by the appellant as not maintainable despite the fact that the appeal was filed as a common appeal against both the orders u/s 154 as well as u/s 143(3) ? - HELD THAT:- Once the assessee has challenged the order of the Assessing Officer in the appellate proceedings, the pedantic hyper-technical approach of the Revenue Officer is required to be rejected as it is an admitted position that the assessment proceedings are not adversarial litigation. Further, the doctrine of merger will go into play for the rescue of the assessee. Once law has given a right to the assessee to challenge the order of the Assessing Officer by following consolidated appeal whereby the assessee can challenge the assessment order and the rectification order then the assessee cannot be non-suited merely because he had only challenged the orders u/s 154. Though the AO had only made an addition to the returned income of the assessee as against the cash deposit during the demonetization period, however, still the assessee chooses to challenge the meagre addition on the above said technical ground, we are of the opinion that the order of the learned CIT(A) is required to be quashed, and the case is remanded back to the file of the AO with a direction to pass the order on merit after treating the appeal of the assessee as an appeal challenging the order u/s 143(3) r.w.s. 154. Needless to say, while exercising power, the learned CIT(A) may use all his powers vested under the Act, including the power to enhance / reduce / confirm the order passed by the Assessing Officer.
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