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2023 (7) TMI 803 - AT - Income TaxRectification u/s 154 - disallowance of Interest claimed - debatable and arguable issue - HELD THAT:- We keep in mind this settled legal proposition and advert to facts of the instant case wherein, the issue of sec. 154 rectification pertaining to the alleged prior period expenditure is highly debatable one only since the same involves crystallization issue in the earlier assessment year; on mercantile basis and in the year of payment is liable to be paid, after crystallization. This is indeed coupled with the various judicial pronouncements i.e., PCIT vs. Adani Enterprises[2016 (7) TMI 1250 - GUJARAT HIGH COURT] holding that such a claim is indeed a tax neutral case in case the concerned assessee is assessed at uniform rate throughout. We hold these peculiar facts and circumstances that both the learned lower authorities have erred in law and on facts in initiating sec. 154 rectification proceedings against the assessee.
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