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2023 (7) TMI 503 - ITAT RAIPURDisallowance of expenditure indicated in the audit report but not taken into account in computing the total income in the return - Additions while processing ITR u/s 143(1)(a) at CPC - Rectification of mistake u/s 154 - addition u/s 43B and u/s 2(24)(x) r.w.s 36(1)(va) in respect of Contributions received from employees towards PF/ESI and but not deposited to the relevant funds by the due dates under respective laws - HELD THAT:- The argument of the revenue that, the assessee instead of filing revised audit report rides on wrong bus and has applied the provisions u/s. 154 of the Act for rectification of mistakes, cannot be acceded to and rejected. An intimation u/s. 143(1)(a) of the Act was served upon the assessee on 21st January, 2019 and the assessee has very diligently responded with the reasons specifying that since the payments which are proposed to be disallowed are made within the specified, the same cannot be subjected to any disallowance, however, the AO, who was duty bound to consider such response from assessee, before making an addition on this account, has not considered the submission of the assessee, therefore, the same should have been considered as a mistake apparent from the record. We, thus, do not find any merit in the contention raised by the revenue and are of the view that since a mistake was apparent from the record and the AO, who was mandated by the law to consider the response of the assessee, which was submitted within the prescribed time of 30 days but has not considered the same and crystallized the addition, therefore, the mistake is apparent from record and curable within the provisions of Section 154 of the Act. Department’s plea that the assessee should have revised the audit report which was carrying the mismatch with figures in ITR, cannot be considered to be a reason for not granting relief to the assessee otherwise the provision of Section 143(1)(a) of the Act and the provisos therein would become redundant. In such circumstances, we are unable to comprehend the contention of the revenue and, therefore, the same cannot be considered concurred with. Since the issue before the ld. CIT(A) wherein the submission of the assessee were taken into consideration but were not carefully read into. - CIT(A) has not gone through the facts of the case in its entirety and, therefore, has comprehend that the payments were made beyond the due date prescribed under respective statutes, therefore are disallowable. We do not persuade to concur with the finding of the ld. CIT(A). Accordingly, we set aside the order of the ld. CIT(A) and in the interest of justice, considering the merits of the case, we direct the AO to examine the authenticity of the documents submitted by the assessee in support of its contention that the impugned payments were made within the specified time and delete the addition. Thus, this issue is allowed for statistical purposes.
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