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2020 (11) TMI 607 - ITAT BANGALORERectification u/s 154 - Addition invoking the provisions of section 40A(3) - HELD THAT:- In the instant case, the A.O. has not doubted the genuineness of the transaction. Therefore, taking proceedings u/s 154 of the I.T.Act only goes to show that it is only a mere change of opinion, which is outside the mandate of the said section. The Hon’ble Supreme Court in the case of ITO v. Volkart Brothers [1971 (8) TMI 3 - SUPREME COURT] held that a mistake apparent on the record must be an obvious and patent mistake and not something which could be established by a long-drawn process of reasoning on points on which there might conceivably be two opinions. Since the assessee in the given facts, had proved that there is commercial / business expediency in making cash purchases, the mistake cannot be stated to be obvious and apparent from record in view of the judgment in the case of M/s.M.K.Agrotech Pvt. Ltd. [2019 (1) TMI 37 - KARNATAKA HIGH COURT] and the order of Jaipur ITAT in the case of M/s.A.Daga Royal Arts [2018 (6) TMI 1240 - ITAT JAIPUR].For the aforesaid reasoning and the judicial pronouncements, I hold that the disallowance u/s 40A(3) in a 154 proceedings is uncalled for and I quash the same. - Decided in favour of assessee.
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