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2023 (5) TMI 210 - ITAT INDOREValidity of rectification order as barred by limitation - AO made additions after 4 years while passing rectification order u/s 154 - HELD THAT:- On perusal of the show-cause notice u/s 154 dated 30.11.2016 and the final order u/s 154 dated 07.05.2018 we find that the show-cause notice as well as final order talk of rectification of intimation dated 10.04.2014 and not of assessment-order dated 31.03.2014. Thus, viewed from 10.04.2014, the rectification-order dated 07.05.2018 is within the 4 years’ time-limit prescribed in section 154(7) and there would be no illegality. Therefore, to ascertain correct state of affairs, we confronted the Ld. AR about the details of intimation dated 10.04.2014 but the Ld. AR could not spell out satisfactorily. Hence, in absence of clear details coming before us, we are not satisfied with the claim projected by assessee in this ground; resultantly we dismiss this ground. Quantum of disallowance - AO has rightly made an addition @ “.5%” of the total expenditure AND mention of “5%” by AO in the assessment-order is a mistake - HELD THAT: - Firstly we observe that before making the impugned disallowance, the AO show-caused the assessee to make a “reasonable amount” of disallowance. Thus, the thrust of AO was on “amount” and that too “reasonable”. Secondly, we observe that there was a disallowance of Rs. 3,00,000/- of similar nature in AY 2012-13, which is very close to Rs. 2,68,197/- and far distant from Rs. 26,83,197/-. This shows that the reasonable amount of disallowance could be Rs. 2,68,197/- only. Ld. DR is not able to place any cogent evidence before us to demonstrate that the AO wanted to make disallowance as high as 5%. Lastly, we are of the view that even if there be any ambiguity or doubt in drafting the assessment-order, it has to be resolved in favour of assessee and the revenue cannot take advantage of it for the simple reason that the AO, who is an officer of revenue, has drafted assessment-order. There was no mistake in the quantum of disallowance made by AO in assessment-order. Consequently, we quash further addition made in rectification-order. The assessee succeeds in this ground.
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