The Chamber of Commerce vs. The Income Tax Officer

Parties Involved

Facts Summary

The assessee, The Chamber of Commerce, filed an appeal against the CIT(A)-National Faceless Appeal Centre Delhi's order dated 02.11.2023, which was in proceedings under section 154 of the Income Tax Act, 1961. The assessee argued that the lower authorities erred in law and on facts in finalizing the sec.154 rectification dated 19.12.2019, which did not allow the loss of Rs.48,12,549/- claimed in the return as application of income for the purpose of granting sec.11 exemption. The assessee's counsel argued that the Assessing Officer had no jurisdiction to proceed with the sec.154 rectification mechanism as the sec.143(3) regular assessment was revised by the CIT(E) under section 263 of the Act. The assessee also argued that the Assessing Officer had issued a sec.142(1) notice to the assessee while framing the sec.143(3) read with sec.263 assessment dealing with the loss issue, which could hardly be treated as a rectifiable mistake.…

Legal Issues

• 1. Whether the lower authorities erred in law and on facts in finalizing the sec.154 rectification.
• 2. Whether the Assessing Officer had jurisdiction to proceed with the sec.154 rectification mechanism.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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