Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (10) TMI 629 - AT - Income TaxRectification u/s 154 - disallowance u/s. 40 (a) (ia) for non-deduction of tax from lorry hire charges - HELD THAT- In the instant case passed the assessment order on 18.12.2007 u/s. 143 (3) determining the total income of the assessee at ₹ 10,71,080/- as against the returned income of ₹ 9,78,805/- wherein he disallowed certain expenses on estimate basis and made addition u/s. 43B. There is absolutely no discussion on the issue of disallowance u/s. 40 (a) (ia) for non-deduction of tax from lorry hire charges. We find the AO passed the order u/s. 154 on 29.03.2010 wherein he made addition u/s. 40 (a) (ia) CIT(A) quashed the rectification order passed u/s. 154 on the ground that assessee was not given any opportunity of being heard while enhancing the income u/s. 154 and further the issue is not a mistake apparent from record and is debatable issue and dependent on elaborate arguments and has to be established by a long drawn process of reasoning. No infirmity in the order of the CIT(A) quashing the reassessment proceedings. Admittedly there is no discussion on the issue of disallowance u/s. 40 (a) (ia) on account of non deduction of tax from lorry hire charges. Therefore, only course of action available was order u/s. 263 and the AO could not have assumed jurisdiction u/s. 154. We find the CIT(A) while quashing the rectification order passed by the AO has followed the decision of Hon’ble Kolkata High Court in the case of Oil India [1989 (6) TMI 24 - CALCUTTA HIGH COURT] wherein the issue of rectification u/s. 154 vis-a-vis the disallowance u/s. 40 (a) (v) has been dealt with in detail. We are of the considered opinion that the CIT(A) was fully justified in quashing the rectification proceedings on the ground that the issue is not a mistake apparent from record and is a debatable issue and dependent on elaborate arguments and has to be established by a long drawn process of reasoning. The grounds raised by the revenue are accordingly dismissed.
|