2013 (4) TMI 224

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..... et aside order of CIT(A), who restored the matter to the file of Assessing Officer for passing fresh orders under Section 154 after allowing opportunity of being heard to the assessee?" The Assessing Officer finalized assessment of the respondentassessee for the assessment year 1988-89 on 31.12.1990. The Assessing Officer disallowed many expenditures including expenditure of Rs.40,29,208/-, which is evident from para 5 of the order, which reads as under: "5. Expenditure of Earlier years - The assessee has debited a sum of Rs.6,66,056/- for the Ist period and Rs.40,29,208/- for the IInd period as adjustments relating to earlier years. The assessee has claimed certain expenses relating to the earlier years. The liability to pay arose in th .....

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..... ranted to the assessee. However, in further appeal, the Tribunal set aside the order of the Commissioner of Income Tax (Appeals) and held that the order made by the Assessing Officer under Section 154 is null & void. The Revenue sought reference under Section 256 (1) of the Act, which was declined by the Tribunal vide order dated 04.01.1999. Still aggrieved, the Revenue has invoked the jurisdiction of this Court under Section 256(2) of the Act. Since the issue is short and purely legal in nature, we proceed to decide the question of law at this stage with the consent of the parties. Section 154 of the Act empowers the Income Tax Authority to rectify any mistake apparent on the record and permits amendment of any order passed by it under th .....

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..... ise of the powers conferred under Section 154 of the Act. The only procedural irregularity can be said to be of not granting any opportunity of hearing to the parties. Though, we have doubt that any opportunity was required for correction of such inadvertent and clerical mistake, but since the Commissioner of Income Tax (Appeals) has granted such opportunity, we restrain ourselves to opine any further on the issue. Therefore, the learned Tribunal is not right in setting aside the order passed by the Commissioner of Income Tax (Appeals), which only contemplated that an opportunity of hearing should be provided to the assessee. Consequently, the substantial question of law is answered in favour of the Revenue and against the Revenue.   .....

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