Merely ex-parte rectifying computation without amending assessment order not make it nullity- ITAT

Merely rectifying computation without amending assessment order without notice to assessee does not nullify the entire assessment  – ITAT

In a recent judgment, ITAT Guwahati has held that merely rectifying  computation without touching in the body of order without giving opportunity to the assessee does not nullify the entire assessment  order passed.

ABCAUS Case Law Citation:
5186 (2026) (07) abacus.in ITAT

In the instant case, the Revenue had challenged the order passed by the CIT(A) in holding that an opportunity of being heard was required to be given to the assessee before passing the rectification order under section 154 of the Income Tax Act, 1961 (the Act).

The respondent assessee was a HUF engaged in the business. A search and seizure action u/s 132 of the Act was conducted in a Group of cases and various premises and statement was recorded u/s 132(4) of the Act. During the course of search operation certain documents alsong with excess cash was found and seized. The assessee also accepted the excess quantity of stock.

Thereafter, assessment u/s 143(3) r.w.s. 153A of the Act was completed. However, later on the AO rectified the order passed u/s 143(3) r.w.s. 153A of the Act observing that due to inadvertent typographical error, total assessed income was shown less than the actual

Aggrieved from the order u/s 154, the assessee filed appeal before the CIT(A) who held that the AO had violated the principle of natural justice for giving chance as provided u/s 154(3)154(6) of the Act. Considering the remand report, after relying on the various judgments, he allowed the appeal of the assessee without going into merits of the case.

The Tribunal observed that the assessment order was passed u/s 143(3) r.w.s. 153A of the Act where the AO had made various additions. Later, he passed the rectification order again he passed order u/s 154 of the Act and rectified the typographical mistake in the computation part but there was no change in the body of the order or making any addition. 

The Tribunal noted that the assessee was aware about the entire addition made, the only the mistake done by AO was to take correct assessed income while computing the net tax payable after 143(3)/153A assessment. The assessee had also filed stay petition, therefore, it could not be said that the assessee was not aware about the rectification proceeding.

The Tribunal opined that merely rectifying without touching in the body of order and without giving opportunity to the assessee does not nullify the entire assessment order passed.

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