TMI Blog2014 (4) TMI 1003X X X X Extracts X X X X X X X X Extracts X X X X ..... an order may amend that part of the order which has not been considered and decided in any proceeding by way of appeal or revision against order - the matter of ad-hoc disallowance out of sundry expenses was considered and decided by CIT(A) in appellate proceedings – the AO had erred in framing revision order passed u/s 154 – Decided in favour of Assessee. - I.T.A. No. 2857/AHD/2010 - - - Dated:- 24-4-2014 - Shri D. K. Tyagi, J. M. And Shri Anil Chaturvedi, A.M.,JJ. For the Appellant : Shri Tushar Hemani For the Respondent : Shri D. C. Mishra, Sr. D. R. ORDER Per Shri Anil Chaturvedi, A. M. 1. This appeal is filed by the Assessee against the order of CIT(A)-XVI, Ahmedabad dated 23.08.2010 for A.Y. 2003-04. 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cular issue can be done is acceptable and hence the decision cited are not discussed separately. However, here the issue is not a legal issue. The issue is not an issue where there can be a debate or to opinion possible. The AO has disallowed 15% very clearly as is seen from the assessment order. In the assessment order, this issue has been discussed on page 17 and 18 of the assessment order. From para-7.3 of the assessment order on page 18, it is very clear that the AO is disallowing 15% of the administrative expenses and welfare expenses. There has been a calculation mistake as pointed out above. The normal disallowances in such respects are 15% and not 1.5%, contrary to the claim made by the appellant. Further, this is not an issue where ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue of provisions of S.154 of the Act. 2. The Id. CIT(A) has erred in law and on facts of case by confirming the action of Id. AO in invocation of provisions of S.154 of the Act on the disallowance out of welfare expenditure which had been considered and decided by the then Id. CIT(A) in appellate proceedings against the assessment order passed u/s 143(3) of the Act. 3. The Id. CIT(A) has further erred in law and on facts of the case by confirming the action of Id. AO by invoking provisions of S.154 on the matter which is debatable or having a difference of opinion and accordingly both the lower authorities have passed the order beyond their jurisdiction. 4. Both the lower authorities have passed the orders without properly apprecia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by him and accordingly the suo motu disallowance made by Assessee was upheld. He pointed to the relevant para of the order of CIT(A) placed at page 36 of the paper book. The ld. A.R. further submitted that against the order of CIT(A), Revenue preferred appeal before Hon ble Tribunal but however in the appeal, the Revenue did not challenge the disallowance of Rs. 23,064 which was deleted by CIT(A) and for which he pointed to the grounds of appeal raised before Tribunal in ITA No. 788 1216/AHD/2008 and placed at page 35, 36 of the paper book. He therefore submitted that when the disallowance made by the A.O had attained finality, and therefore it could not be rectified under section 154 of the Act. He therefore submitted that CIT(A) has er ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... squarely applies on the Assessing Officer also. Considering all these factors 15% of the expenses of Rs. 4749117(Administrative expenses and Rs. 121822 being the amount of expenses under the head Welfare expenses are disallowed. The disallowance is worked out to Rs. 73,064/- as against the disallowance already made by the assessee of Rs. 50,000/-. Therefore, the net addition of Rs. 23,064/- is made for want of proper control over the expenses. 8. Against the order of A.O, Assessee carried the matter before CIT(A). CIT(A) deleted the addition made by A.O. by holding as under:- 6. The next ground of appeal is directed against the disallowance of Rs. 23,064/- on account of sundry expenses. It is the contention of the A.R. of the appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n any proceeding by way of appeal or revision relating to an order referred to in sub-section(1), the authority passing such order may, notwithstanding anything contained in any law for the time being in force, amend the order under that sub-section in relation to any matter other than the matter which has been so considered and decided. 10. On reading of Section 154(1A) it is seen that it specifically provides that any matter which has not been considered and decided in any proceedings by way of appeal or revision filed against an order referred to in sub-section (1) of Section 154 of the Act may be amended by the authority passing such an order in exercise of its power under sub-section (1) of Section 154 of the Act. In other words, t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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