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The pendency of the proceedings before CIT(A) pursuant to the order of Tribunal on a different issue, would not preclude the respondent No. 2-authority to proceed with the rectification of the order giving effect to the original order of CIT(A), not the subject-matter of the present appeal before CIT(A). But in view of the remand by Tribunal to the CIT(A) for adjudication on the ground Nos. 9 and 10, this Court deems it appropriate to direct CIT(A) to dispose of the appeal in accordance with law in an expedite manner, preferably within a period of six months from the date of receipt of the certified copy of the order and is ordered accordingly.

Shanti Prime Publication Pvt. Ltd.

Sec. 154 of Income-tax Act, 1961— Rectification of Mistake— Furnishing the details of the rectification, which the authority is proposing to, is sine qua non for passing rectification order.

Facts: Assessee is a co-operative society registered under the provisions of Karnataka Co-operative Societies Act, 1959 and filed its return of income in respect of asst. yr. 2013-14, claiming deduction under s. 80P. Assessment came to be concluded disallowing the same under s. 80P against which, assessee preferred an appeal before the respondent No. 1 and the said appeal came to be partly allowed. Assessee has preferred an appeal before the Tribunal on which was remitted to the file of CIT(A) for adjudication Tribunal. In the meantime, the respondent No. 2 had issued the notice under ss. 154/155 proposing to rectify the order giving effect to the CIT(A).

Held, that it is ex facie apparent that notice issued under ss. 154/155 is incomplete. Furnishing the details of the rectification, which the authority is proposing to, is sine qua non for passing rectification order. In the absence of such particulars made available to the petitioner/assessee, the assessee is deprived to meet the proposals made which would result in violation of principles of natural justice. On the basis of the notice , the order impugned is passed enhancing the tax liability. Hence, the said order suffers from the vice of arbitrariness and is illegal per se. The pendency of the proceedings before CIT(A) pursuant to the order of Tribunal on a different issue, would not preclude the authority to proceed with the rectification of the order giving effect to the original order of CIT(A), not the subject-matter of the present appeal before CIT(A). But in view of the remand by Tribunal to CIT(A) for adjudication, Court deems it appropriate to direct CIT(A) to dispose of the appeal in accordance with law in an expedite manner, preferably within a period of six months from the date of receipt of the certified copy of the order and is ordered accordingly. - BADAGABETTU CREDIT CO-OPERATIVE SOCIETY LTD. V/s CIT - [2020] 313 CTR 598 (KARN)

The pendency of the proceedings before CIT(A) pursuant to the order of Tribunal on a different issue, would not preclude the respondent No. 2-authority to proceed with the rectification of the order giving effect to the original order of CIT(A), not the subject-matter of the present appeal before CIT(A). But in view of the remand by Tribunal to the CIT(A) for adjudication on the ground Nos. 9 and 10, this Court deems it appropriate to direct CIT(A) to dispose of the appeal in accordance with law in an expedite manner, preferably within a period of six months from the date of receipt of the certified copy of the order and is ordered accordingly.

Shanti Prime Publication Pvt. Ltd.

Sec. 154 of Income-tax Act, 1961— Rectification of Mistake— Furnishing the details of the rectification, which the authority is proposing to, is sine qua non for passing rectification order.