2023 (5) TMI 481 - AT - Income Tax

Rectification u/s 154 - tax levied u/s 115BBE - AO recorded that the additional income was to be taxed at flat rate at 30% u/s 115BBE instead of slab rates - HELD THAT:- In the absence of such a satisfaction, if an order under section 143(3) of the Act is passed accepting the return of income, then it is difficult to presume that such an order was passed in respect of any income determined u/s 68, section 69, section 69A, section 69B, section 69C or section 69D of the Act or that the tax has to be levied u/s 115BBE of the Act.

Unless and until such a compliance is there in the assessment order, it cannot be said that there was any mistake apparent from record or that the proceedings are amenable to the jurisdiction of the learned Assessing Officer under section 154 of the Act. Having not recorded any such satisfaction as required under law, AO cannot be allowed to contend that the provisions of section 115BBE of the Act are applicable to the case of the assessee and, therefore, the error in respect of leviable rates has to be rectified u/s 154 of the Act.

Consistent view taken by the Co-ordinate Benches of this Tribunal referred to above is applicable to the facts of the case on hand on all force. Accordingly, hold that exercise of jurisdiction under section 154 of the Act by the learned AO is bad in law and consequently the proceedings under section 154 of the Act are liable to be quashed.