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No rectification u/s 154 is permissible once order passed by CIT(A) is accepted by income-tax department.

Assessee, employee of a bank, received subsistence allowance from bank for a period he suspended in view of a order of the Court setting aside suspension of assessee.
Income tax officer observed that assessee was entitled to relief under section 89(1) in respect of subsistence allowance received by it. Same was affirmed by the Commissioner (Appeals).
Thereafter, revenue filed an rectification application under section 154 on ground that assessee had not claimed any relief under section 89(1) in return of income, thus, order passed by authority needed to be rectified by withdrawing benefit allowed under section 89(1).
The High Court held that order passed by Income-tax Officer and affirmed by Commissioner (Appeals) had attained finality and became binding. Impugned application under section 154 was to be dismissed as there was no mistake in previous orders requiring rectification in view of admitted and undisputed fact that assessee was entitled to claim benefit under section 89(1).
Prakhar Kalaniauthor

Prakhar Kalani (B.Com, ACA, DISA), Partner at Kalani Gattani & Co. Prakhar Kalani is a Qualified Chartered Accountant . contact him @ pkalani@kgcmail.com

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