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2018 (1) TMI 926 - ITAT PUNE
Rectification of mistake u/s 154 - addition in respect of payment of compensation for violating the terms and condition of non-solicitation and non-compete agreements - whether payment towards non-solicitation and non-compete agreements is revenue in nature? - Held that:- Powers conferred u/s. 154 on the Assessing Officer are limited only to rectify the patent mistakes. The Assessing Officer cannot use the canon of section 154 to review its decisions. In the instant case the Assessing Officer has exercised his power u/s. 154 not to rectify any mistake but to thrust his changed opinion. This cannot be permitted under the provisions of section 154 of the Act. The Assessing Officer does not have unfettered powers under the section to play with the assessment of assessee. We do not find any infirmity in the order of Commissioner of Income Tax (Appeals) in rejecting the action of Assessing Officer for making addition. Thus, we concur with the findings of Commissioner of Income Tax (Appeals). Accordingly, the impugned order is upheld and the appeal of Revenue is dismissed.