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2018 (12) TMI 909 - AT - Income TaxRectification of mistake - Addition towards service tax liability by invoking the provisions of section 43B - scope of rectification of mistake order - Held that:- No material has been brought on record to show that ₹ 9,60,672/- as service tax expenditure was claimed by the assessee. Thus, disallowance u/s.43B can be made only of an amount which was a sum payable. The relevant law under the service tax was payable on cash basis. No material is available to show that the liability of ₹ 9,60,672/- as service tax was incurred before the end of the relevant previous year under the service tax law. Thus addition by invoking the provisions of section 43B in a proceeding u/s.154 of the Act is impermissible. TDS u/s 194C - Addition on account of job work charges by invoking the provisions of section 40(a)(ia) of the Act in a proceedings which was initiated u/s.154 - Held that:- A perusal of provisions of section 194C shows that a person is liable to deduct ITDS when a contract for work is of an amount more than ₹ 30,000/- or where payment for work is made to a person more than ₹ 75,000/- during the financial year. The Assessing Officer has brought no material on record to show that either of the above condition was satisfied in the instant case. Therefore, it is not open to AO in a proceedings u/s.154 to hold that the assesse was obliged to deduct ITDS on job work and consequently, the disallowance made u/s.40(a)(ia) of the Act it outside the jurisdiction of section 154 of the Act - Decided in favour of assessee.
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