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TMI Blog2022 (12) TMI 877X X X X Extracts X X X X X X X X Extracts X X X X ..... e demand of Rs.3,01,650/-. 2. Under the facts and circumstances of the case ld. CIT(A) was not justified overlooking the grounds filed against the order u/s 154 by making the academic discussion u/s 143(1) proving the order as advisory in nature. 3. Under the facts and circumstances of the case the ld. CIT(A) was not justified while confirming the addition of Rs.8,14,617/- on account of salary to partners Rs.3,45,419/- and interest of partners Rs.4,69,198/-. 4. Under the facts and circumstances of the case the ld. CIT(A) was not justified while confirming the demand u/s 154 on the sole reason that appeal has not been filed against the order u/s 143(1).'' 2.1 At the outset of the hearing of the case, the Bench noted that there is dela ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome was assessed and intimation u/s 143(1) dated 31-05-2019 was issued. The assessee did not file appeal against this intimation and filed rectification petition u/s 154 of the Act on 20-03-2020 which was rejected by the CPC Bangalore. 3.2 Aggrieved by the order of the AO, the assessee carried the matter before the ld. CIT(A), NFAC, Delhi who dismissed the appeal of the assessee by observing as under:- 5. Decision I have carefully considered the facts and circumstances of the case and statement of facts and grounds of appeal filed by the appellant. I have also carefully gone through the rectification order u/s 154 dated 5-05-2020. 5.1 Ground No. 1 to 3 5.1.1. These grounds of appeal are not related to mistake apparent from record ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ake must be obvious and apparent. - not something which can be established by a long drawn process of reasoning on points on which there may be two opinions. 2 CIT vs Lakshmi Prasad Lahkar [11996) 220 ITR 100 Gauhati)]- Mistake means commission that is not designed and which is obvious and something which has no two opinions or which is debatable. C. Ram Lal Raivadiua Vs. CIT 104 CTR 403 (Calcutta High Court):- A highly debatable question cannot be made amenable to the rectification jurisdiction." 5.1.3 The intimation order was passed u/s. 143(1) on 31.05.2019, which was appealable. However, the appellant has not filed any appeal against the intimation order within the specified time period. Rather, the appellant has filed rectificati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of Rs. 3,45,419/- on account of salary to partners and Rs. 4.69.198/- on account of interest to partners could have been looked into once the appeal would have been filed against the order u/s. 143(1) of the Act. But, for rectification purpose, issues cannot be examined which are not apparent from the record. The appeal against order u/s. 154 has been filed to agitate the grievances against the order u/s. 143(1) of the Act. It is explicitly clear that the grounds of appeal filed by the appellant company are not eminating from the order u/s. 154 of the Act. The appellant cannot use proceeding u/s. 154 to file appeal against the intimation u/s. 143(1) of the Act. Thus, the appeal on this issue is not admissible and therefore, dismissed. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come (P.B. No. 35- 38) against these order u/s 154 appeal was filed before CIT appeals who passed the order without considering facts of the case confirmed the disallowance and asserted that assessee should filed the appeal against the intimation u/s 143(1) instead of order u/s 154 even a single word has not been discussed about the grounds of appeal and disallowance made in the order u/s 154. It is further submitted that CIT appeal has stated in his order that appellant should file the appeal against the intimation u/s 143 (1) instead of filling the appeal u/s 154 as this is long way to approach but it could not be established By the CIT that this was not mistake apparent from record and nothing has been said about ground of appeal simil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e but the said application was dismissed against which the assessee filed the appeal before the ld. CIT(A), NFAC, Delhi who while rejecting the appeal of the assessee concluded that in case the assessee was aggrieved by the addition then in that eventuality, the assessee should have challenged the said order by filing the appeal against the same but instead of filing the appeal the assessee had chosen to file rectification petition u/s 154 of the Act which is not maintainable and thus rejected the appeal filed by the assessee without discussing the merit of the claim raised by the assessee. The Bench has perused copy of capital account of the partners which is placed at PBP 31 to 32, is duly audited by the Auditors and also perused the comp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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