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2023 (5) TMI 1208 - AT - Income TaxRectification u/s 154 - apparent mistake in the order passed by the AO in the year 2009 - whether after finalization of the assessment proceedings up to the level of the Tribunal and after dismissing the M.A. can assessee file an application under section 154 before the AO on the same issue? - HELD THAT:- Whether the income tax authorities mentioned u/s 116 can rectify any mistake in its order which is though not apparent but will have any effect of setting aside the order passed by the superior authorities. No doubt that the income tax authority can rectify any apparent mistake in its order however, when the order of the AO, has been upheld by the ld.CIT(A) and thereafter by the Tribunal, in that eventuality, AO is denuded from rectifying any such mistake, as it would lead to giving unbridled power to AO/ ld.CIT(A) to unsettled the settled position of fact and law and will lead to chaos and anarchy. In the present case, after the Tribunal had dismissed the appeal of the assessee on merit, AO has rightly dismissed the rectification application filed by the assessee as the AO was duty bound to implement the order passed by the Tribunal. After approval of the order without modification by the superior authority, the order of the lower authority ceases to exist. The order of the Tribunal/superior authority passed by it can only be modified, set aside and annulled by process known to law. Admittedly, the Tribunal has neither recalled its order nor an appeal has been preferred against the order passed by the Tribunal before the hon’ble High Court. Order passed by the Tribunal has attained finality and is required to be executed / enforced by the Assessing Officer. We cannot subscribe the view of the ld. AR that by rectification, the alleged jurisdictional issue can be looked into by the Assessing Officer or ld.CIT(A) thereby annulling the entire assessment proceedings, more particularly, when the assessment proceedings have already attained finality by virtue of the order of the Tribunal. There cannot be two contradictory orders of the Tribunal one by upholding the assessment and other quashing the assessment based on the jurisdictional error. A mistake which can be rectified is required to be apparent and should be known to the Assessing Officer without any in-depth analysis. The Hon'ble Supreme Court in the case of Volkart Brothers [1971 (8) TMI 3 - SUPREME COURT]had elaborately discussed the scope of section 154 , hence the mistake pointed by the assessee can not be said to be apparent in nature. Examining the issue either from the prospective of finality of the first order or from the scope of section 154, we allow the appeal of Revenue and accordingly, the appeal of the Revenue is allowed.
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