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2016 (4) TMI 1363 - AT - Income TaxRectification u/s 154 - TDS u/s 194C OR 194I - application barred by limitation - disallowance u/s 40(a)(ia) - non deduction of TDS u/s 194C on tanker hire charges - Main plank of his argument is that the payments made by the assessee on account of tanker hire charges were in the nature of rent as envisaged in section 194I and not in the nature of works contract covered u/s 194C as taken by the AO - HELD THAT:- We are unable to accept this contention for the assessee as disallowance u/s 40(a)(ia) on account of tanker hire charges was made by AO in the order passed u/s 143(3) on 18.12.2007 and not in the order passed u/s 143(3)/147 on 24.12.2010 and as rightly held by CIT(A), the application filed by the assessee for rectification u/s 154 of the order passed by AO on 18.12.2007 was clearly barred by limitation as per subsection (7) of section 154 which provides that no amendment u/s 154 shall be made after expiry of four years from the end of the financial year in which the order sought to be amended was passed. The assessment made by AO u/s 143(3)/147 is independent and separate from the order passed u/s 143(3) in as much as the scope of such assessment is limited to bringing to tax the income which has escaped assessment made originally inter alia u/s 143(3) and the theory of doctrine of merger does not apply in the case of assessment made u/s 143(3) originally and the assessment made subsequently u/s 143(3)/147. Both these assessments stand independently on their own footing. We therefore find ourselves in agreement with CIT(A) that the application filed by the assessee for rectification u/s 154 was barred by limitation and the action of AO in rejecting the same was justified on this ground also. As rightly held by AO as well as by CIT(A), the issue as to whether the amount paid by the assessee on account of lorry hire charges is in the nature of works contract as covered by section 194C or in the nature of rent as envisaged u/s 194I is highly a debatable issue and the rectification of the same is beyond the purview of section 154, the scope of which is very limited. We, therefore do not find any infirmity in the impugned order of ld. CIT(A) upholding the order passed by AO whereby he rejected the application of the assessee for rectification on the issue of disallowance u/s 40(a)(ia) and upholding the same, we dismiss this appeal of the assessee.
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