Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (2) TMI 274 - AT - Income TaxScope of rectification of mistake orders - Disallowance made u/s. 40(a)(ia) in the proceedings u/s. 154 - Held that:- We find that the AO had merely sought to investigate in detail the basic facts as to whether the assessee had indulged in making purchase of printing material for the purpose of its business or had engaged contractors and have the printing job done in tune with its requirements in the proceedings initiated u/s. 154 of the Act. We hold that the same ought to have been carried out by the AO only in the assessment proceedings u/s. 143(3) of the Act or if necessary, avenues open to the revenue are by either resorting to section 263 of the Act (revision proceedings) by the Ld. CIT or by reopening the assessment u/s. 147 of the Act. We hold that the issue being squarely debatable cannot be carried out u/s. 154 of the Act. We also hold that what could be rectified u/s. 154 of the Act are mistakes that are patent, glaring and apparent from record. Mistake, if any, which has to be discovered by a long drawn process or reasoning or examination of arguments on points where there may conceivably be two opinions cannot be said to be mistake or error apparent from record.We also appreciate the circular of CBDT No. 715 is binding only on the tax authorities and not on the assessee as admittedly the circular cannot detract from the provisions of the Act. Addition made on account of closing stock - Held that:- Necessity of making such addition had been understood and accepted as a dispute and the said dispute has reached the corridors of the various High Courts hence, the same would make the issue debatable.Since the subject mentioned issue also is debatable the same cannot be adjudicated in section 154 proceedings. Hence, the grounds raised by the revenue are dismissed
|