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2015 (7) TMI 777 - AT - Income TaxLegality of notice issued and order passed u/s 154 - AO disallowed cash purchases made at ₹ 33,70,800/- u/s. 40A(3) of the Act which was added to the income of the assessee vide order dated 17.6.2014 passed u/s. 154 - Held that:- We find considerable cogency in the submissions of the assessee’s counsel that assessment order passed under section 143(3) of the Act after considering the relevant material and after appropriate reasoning hence there is no mistake apparent from record which can be rectified under section 154 of the Act therefore the notice U/s 154 and order passed are illegal, bad in law and without jurisdiction. It is amply clear that the issue in dispute is a legal issue in respect of additions made u/s. 154 without any mistake apparent on record and on debatable issue and we are of the view that the order u/s. 154 passed by the AO and upheld by the Ld. CIT(A) are not sustainable in the eyes of law. See CIT vs. Gayatri Glass Works (2007 (4) TMI 259 - ALLAHABAD HIGH COURT) and T.S. Balaram, ITO, Company Circle-IV, Bombay vs. Volkart Brothers and others [1971 (8) TMI 3 - SUPREME Court] wherein held that “a mistake apparent on the record must be an obvious and patent mistake and not something which can be established by a long drawn process of reasoning on points on which there may be conceivably two opinions. A decision on debatable point of law is not a mistake apparent from the record.” - Decided in favour of assessee.
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