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2023 (6) TMI 45 - ITAT AMRITSARRectification u/s 154 - during processing the return u/s 143(1) the provision for payment of gratuity, u/s 40A(7) was rejected - CPC has rejected the rectification petition u/s 154 - HELD THAT:- During processing of return u/s 143(1) the provision for payment of gratuity is added back with total income by contravening section 40A(7). As per the revenue the CPC has a power to disallow the amount on basis of the tax audit report, sated in Col. 21(e) of Form No. 3CD which is not come under purview of mistake apparent from the record, u/s 154. So, section 154 will not be applicable in this case. But the assessee prayed that a reasonable opportunity was denied by the revenue authorities. So,before going for addition u/s 40A(7) the assessee should get a reasonable opportunity before the revenue authority for processing of rectification u/s 154. Accordingly, we remit back the matter to the ld. AO for further adjudication related to the addition made by the CPC. Appeal of assessee allowed for statistical purposes.
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