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2023 (7) TMI 993 - AT - Income TaxRectification u/s 154 - Disallowance of interest expenses u/s 36(1)(iii) - AO giving a single opportunity of being heard to the assessee - HELD THAT:- As per section 154 of the Act, the AO is empowered to amend any order passed by it under the provision of Act. With a view to rectifying any mistake apparent from record but where such amendment has effect of enhancing assessment, shall not be made unless the assessment authority concerned, has given notice to the assessee of its intention so to do and allow the assessee a reasonable opportunity of being heard. From the records available, it is seen that the assessee was not provided reasonable opportunity of being heard by the AO. Assessee has relied upon the judgement of Hero Cycle Pvt.Ltd. [1997 (8) TMI 6 - SUPREME COURT] & Shri Harinder Singh vs ITO & Others [2011 (12) TMI 223 - ITAT CHANDIGARH] Considering the totality of the facts, invocation of provision of section 154 is not justified under the facts of the present case since the addition made by the AO has resulted into enhancing of assessed income without giving adequate opportunity to the assessee, deserves to be quashed. Therefore, impugned addition is hereby, deleted.
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