Rectification of order passed u/s 144 of it act possible?

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Utkarsh

Chartered Accountant

27 Points Joined July 2010

THe case of the Assessee was selected for scrutiny u/s 143(3) and Assessee did not received any notice of assessement and intimation isuued by the AO due to shifting of residence address. The AO issued a show cause notice which was also not received by the assessee and due to no response from the assessee the AO completed the assessment u/s 144 of the IT Act (BEst Judgement Assessemnet) disallowing exemption claimed by the assessee u/s 54 for selling and buying new house due to lack of documents of new house. So can this order be rectified u/s 154 by producing the purchase documents of the new house to the AO?

Replies (3)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

208247 Points Joined July 2016

The mistake should be a mistake apparent on record and not a mistake which could be discovered by a process of elucidation, argument or debate. The expression ‘mistake apparent from record’ should not be equated in some aspects with mistake on the face of the record [Arvind N. Mafatlal vs. ITO (1957) 32 ITR 350 (Bom) : TC53R.143].

If in order to discover a mistake some matter or evidence extraneous to the record is required to be looked into, then such a mistake which is not gatherable from the record as it stands cannot be said to be a mistake apparent from the record within the meaning of this section [CIT vs. Harnandrai Shrikishan Akodia (1966) 61 ITR 50 (MP)

For invoking the provisions of s. 154, there has to be a mistake apparent from the record. In other words, a look at the record must show that there has been an error and that error may be rectified, A reference to document outside the record is not permissible. The Supreme Court in CIT vs. Keshri Metal (P) Ltd. (1999) 237 ITR 165 (SC)

AMAR

ito

31 Points Joined June 2013

you can file appeal before the Ld. CIT(A) against the Order of the AO and u can adduce the additional evidence which has not produced before the AO during the assessment proceedings under rule 46A of the income tax rule 1957 before the CIT(A)