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2023 (4) TMI 1171 - ITAT DELHIRectification of mistake - assessee e-filed application u/s 154 seeking rectification of mistake while processing intimation u/s 143(1) and reversal of the disallowance u/s 40(b) - inaccuracy in adopting the correct figure of remuneration from audited financial statement - HELD THAT:- Admittedly, the figures entered towards partner remuneration in the P&L account are inconsistent with the tax audit report due to human error while making report under Section 44AB - The certificate of the tax auditor presenting correct position was also made available to the lower authorities. On the face of inaccuracy in adopting the correct figure of remuneration from audited financial statement, an apparent mistake has been committed. In the absence of opportunity to the assessee contemplated in proviso to Section 143(1)(a) the difficulty has been compounded. The mistake could have been avoided while processing the return itself. The mistake in adopting incorrect figure without opportunity mandated in law despite availability of correct position is a mistake of apparent nature and espouses the purpose rectification proceedings under Section 154 of the Act. The pedantic approach adopted by the CIT(A) does not take into account the denial of opportunity to assessee in this regard and thus cannot be countenanced. We thus set aside the impugned order passed by the CIT(A) in question and restore the matter back to the file of the Assessing Officer for redetermination of the issue after taking note of correct facts. This will advance the principles of natural justice explicit in Section 143(1) - Opportunity shall be given to the assessee to present correct factual position on the admissible partner remuneration eligible for deduction under Section 40(b) of the Act. Appeal of the assessee is allowed for statistical purposes.
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