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2014 (2) TMI 471 - AT - Income TaxRectification of order u/s 154 of the Act – Error apparent on record – Payment made from account payee cheque on holiday - Held that:- The mistake apparent from record in the assessment order as pointed out by the assessee in its application u/s 154 of the Act before the AO - in the application u/s 154 of the Act made before the AO such explanation was made before the AO or any evidence was filed in support to the explanation - The first appellate authority to this extent has thus rightly approved the action of the AO in this regard - The CIT(A) was not justified in approving the assessment order that there was no mistake apparent from record in the assessment order regarding denial of explanation towards the payment made to OM Advertising - The mistake was apparent and the AO was supposed to rectify it while rectifying the other mistake pointed out in the application - The AO is directed to allow the same – Decided partly in favour of Assessee. Sustainability of Penalty for concealment u/s 271(1)(c) of the Act - Disallowance u/s 40A(3) of the Act – Held that:- There was mistake apparent in the order of the AO in not accepting the payment made to OM Advertising through an account payee cheque in support of which bank statement was also furnished before the AO - Without verifying this explanation as to whether 5.4.2008 was Saturday or not cannot be arrived at a conclusion beyond doubt that explanation of the assessee was false – thus, the AO was not justified in attracting penal provisions u/s 271(1)(c) of the Act - in absence of arriving at this fact clearly beyond doubt that there was concealment of particulars of income or furnishing inaccurate particulars thereof on the part of the assessee towards the disallowance – Decided in favour of Assessee.
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