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2013 (10) TMI 923 - AT - Income TaxRectification of mistake u/s 154 - The assessee did not appeal against the assessment order - It though moved an application u/s. 154 of the Act on 16.06.2008, claiming a mistake in respect of the last two disallowances listed supra, i.e., interest u/s.36(1)(iii) and of rent u/s. 40A(2)(a)– AO rejected the application - Held that:- the A.O. has clearly and unmistakably committed a mistake in overlooking a vital fact of nearly the same sum, as it appears, having been availed of by the assessee on interest-free basis from its directors, to whom, as a class, interest-free loans had been given, and qua which the disallowance stands effected by him. It is well-settled that no prejudice could be caused to the subject (assessee) by any action or non action on the part of the court (A.O.). - The assessee's claim admitted and the matter restored back to the file of the A.O. to allow relief qua interest disallowed u/s.36(1)(iii) as exigible to the assessee on the basis of the material on record – Decided in favour of Assessee. Disallowance of Rent u/s 40A(2)(a) – Held that:- The assessee was required to justify its claim during the assessment proceedings by the A.O., to which it responded - The disallowance has been effected upon due consideration of the assessee's explanation - No case of any 'mistake', much less one apparent from the record, has been made out by the assessee - the matter, as apparent from the assessee's explanation, being debatable, involving a mixed question of fact and law - no specific arguments with regard to its grievance stood raised before us during hearing by the assessee, and which the case before the authorities below - The assessee fails on this issue – Decided against Assessee.
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