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2022 (2) TMI 491 - AT - Income TaxRectification u/s 154 - mismatch of provision for leave encashment between the figure claimed by the assessee and certified by the Tax Auditor - Admittedly, the assessee did not file any clarification by the Tax Auditor in this regard - whether the AO correctly exercised the jurisdiction u/s 154 ? - HELD THAT:- AO is empowered to amend any order passed by him under the Act with a view for rectifying the mistake apparent from record. Therefore, for exercising power under section 154 of the Act, there should exist a mistake apparent from record. In the present case as per AO the assessee failed to furnish any evidence with regard to its contention that the mismatch of amount on account of leave encashment as per books and as per tax audit report occurred due to clerical/typographical error made in the tax audit report. Moreover, the assessee failed to furnish any certification from the Tax Auditor certifying that there was clerical/typographical error in the tax audit report. Looking to the finding of the AO that no certificate by the Tax Auditor was furnished to state true and correct fact, in our considered view, the AO himself ought to have made inquiry from the Tax Auditor of the assessee. Undisputedly, it is the Assessing Officer who wanted to amend the concluded assessment. Therefore, he was required to verify the facts by making requisite inquiry. We, therefore, set aside the impugned order and direct the AO to decide the issue afresh after making necessary inquiry and verification of facts related to issue under consideration. The grounds raised by the assessee are allowed for statistical purposes only.
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