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2023 (2) TMI 450 - ITAT KOLKATARectification of mistake u/s 154 - clerical error of non-giving credit of TDS - AO athough, withdrew the addition which was made in the rectification order u/s 154 but made another addition by disallowing interest expenses - CIT(A) held that the TDS credit has been allowed as per claim of the assessee and observed that the Assessing Officer did not give any reason whatsoever for enhancing income from other sources - HELD THAT:- AO has misinterpreted the order of the CIT(A). CIT(A) has only directed to verify the record and adopt correct amount. However, since the above directions of the CIT(A) was not clear, therefore, the Assessing Officer proceeded to make a fresh assessment which was neither justified nor within the jurisdiction of the Assessing Officer. Firstly, in the rectification petition, AO was supposed to rectify the error apparent on record. The AO was not justified at all to enhance the income of the assessee from other sources without assigning any reason and without giving any opportunity to the assessee, that too in a rectification order. CIT(A) should have given a clear-cut direction of deleting the enhancement of income in the rectification order instead of directing the AO to verify the record. AO after verification, though, deleted the enhanced income but again proceeded to make certain other disallowance which action of the Assessing Officer has resulted due to inappropriate directions of the CIT(A). In view of this, the impugned order of the CIT(A) is set aside and thereby the enhancement of income made by the AO is also set aside. Any consequential order passed by the Assessing Officer, under the circumstances, of enhancement of income is also hereby set aside. In nutshell, the assessee will be given credit of the TDS as determined by the Assessing Officer in the rectification application u/s 154 of the Act and further enhancement of income, if any, is order to be deleted. Appeal of the assessee stands allowed.
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