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TMI Blog2025 (4) TMI 924X X X X Extracts X X X X X X X X Extracts X X X X ..... ust 31, 2016 thereby determining the total income of the assessee at Rs. 85,42,009/-. The total income of the assessee was determined by the Assessing Officer after adding an amount of Rs. 75,18,689/-towards unexplained sundry creditors which was outstanding as on March 31, 2014. Being aggrieved against such assessment, the assessee preferred an appeal under Section 250 of the Income Tax Act, 1961 before the National Faceless Appeal Centre. 3. The Commissioner of Income Tax Act (Appeals), National Faceless Appeal Centre (for short "CIT(A)") passed an order dated November 23, 2021 directing the Assessing Officer to delete the additions subject to certain conditions. Being aggrieved by the order of the CIT (A), the petitioner preferred an appeal before the Income Tax Appellate Tribunal "B" Bench Kolkata (for short "the Tribunal"). 4. The learned Tribunal passed an order dated February 9, 2023 thereby refusing to interfere with the order passed by the CIT (A). 5. Challenging the order passed by the Learned Tribunal petitioner preferred an appeal under Section 260A of the Income Tax, 1961 before the Hon'ble High Court at Calcutta. The said appeal was allowed by an order dated August ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... therefore, the provisions of Section 154 (3) of the Income Tax Act, 1961 does not stand attracted to the case on hand. He further submits that the order of refund was not approved by the higher authority for which the Assessing Officer passed the subsequent order dated February 7, 2025. Mr. Singhania, learned advocate submits that the effect of the order of the Hon'ble Division Bench is that the appeal stood restored to the file of the CIT(A). 9. Heard the learned advocates for the parties and perused the materials placed. 10. After going through the assessment order dated August 31, 2016, this Court finds that the addition was made towards unexplained sundry creditors which was outstanding as on March 31, 2014. The CIT (A) passed a detailed order and expressed an opinion that the additions made by the Assessing Officer cannot be sustained in the eye of law. The CIT (A), however, directed the Assessing Officer to delete the addition subject to certain conditions as indicated in the order dated November 23, 2021 passed by the CIT (Appeal). 11. The Hon'ble Division Bench in ITAT 147 of 2023 passed an order on August 2, 2023 after framing two substantial questions of law. The subs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hon'ble Division Bench further observed that mere use of the word 'prima facie' could not make prima facie view as the CIT (A) has discussed the matter elaborately taking into consideration the factual position. 15. After going through the order of the Hon'ble Division Bench this Court finds that the Hon'ble Division Bench noted the factual finding recorded by the CIT (A) that the Assessing Officer was not justified in making the addition and there was a positive direction to delete the addition. The Hon'ble Division Bench was of the view that the CIT (A) committed an error of law by remanding the matter to the Assessing Officer for a fresh consideration after having held in favour of the assessee and the Tribunal also did not deal with such issue. 16. In the light of the statutory embargo, it was held by the Hon'ble Division Bench that the order of remand passed by the CIT (A) is not tenable in the eye of law and consequently the same is required to be set aside as well as the order passed by the learned Tribunal. The Hon'ble Division Bench also recorded in its order that admittedly the revenue had not challenged the findings rendered by CIT (A) which was in favour of the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at an amount of tax payable by the assessee. Such an exercise undoubtedly falls with the scope of sub-Section (3) of Section 154 of the Income Tax Act, 1961. 23. Section 154 (3) of the Income Tax Act states that an amendment, which has the effect of enhancing an assessment or reducing a refund or otherwise increasing the liability of the assessee or the deductor or the collector shall not be made under this Section unless the authority concerned has given notice to the assessee or the deductor or the collector of its intention so to do and has allowed the assessee or the deductor or the collector a reasonable opportunity of being heard. 24. Section 154 (2) of the Income Tax Act, 1961 permits the authority concerned to make an amendment of its own motion and also mandates amendment to be done for rectifying any mistake which has been brought to its notice either by the assessee or by the deductor or by the collector and where the authority concerned is the Commissioner (Appeals), by the Assessing Officer also. 25. Upon a conjoint reading of subsection (1), (2), (3) and (4) of Section 154, this Court holds that the authority has the power to make an amendment under Section 154 (1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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