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2022 (8) TMI 124 - AT - Income TaxTDS u/s 194J - Disallowance u/s. 40(a)(ia) - short deduction of tds - payments on account of Training and Refresher - HELD THAT:- With reference to the order u/s. 201(1) there has been non/short deduction of tax at source by the assessee, which is required to be disallowed u/s. 40(a)(ia). It may be that the order u/s. 201(1) dated 28/03/2014, as indeed would be the case, came to the notice of the AO after the passing of the order u/s. 143(3) on 28/03/2014. Even so, unless the reason recorded informs as to what fact had been misstated or misrepresented by the assessee in its reply dated 27/03/2014, and on the basis of which no disallowance, save for Rs. 4,96,350, was made, i.e., with reference to the facts mentioned or found in sec. 201(1) order, there could be no valid reason to believe escapement of income in law, except of course where there is a change in law retrospectively or a judicial decision clarifying the law comes to the notice of the AO, impinging clearly on facts of the case. Needless to add, no such fact or statement of law is stated in the reason/s recorded, on the basis of which jurisdiction to reassess stands assumed by the assessing authority. Why, even the amount disallowed in assessment has been included as income escaping assessment. As fairly not disputed before us by the Ld. CIT-DR, it is in our view a clear case of mechanical recording of reasons u/s. 148(2), and lack of application of mind, both by the AO as well as by the authority approving the same u/s. 151, or at best a change of opinion consequent to a review. We, accordingly, hold the impugned order as bad in law for want of jurisdiction, accepting Ground Nos. 1 to 4 of the assessee's CO, i.e., on which the arguments and pleadings were made before us.
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