Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (5) TMI 1178 - AT - Income TaxRectification u/s 154 - addition u/s 40(a)(ia) - objections raised by “internal audit party” - short deduction of TDS from the payments made towards professional charges and advertisement charges - HELD THAT:- Internal audit party has gone by presumptions and accordingly taken the view that there was shortfall in deduction of TDS which would warrant disallowance expenditure under section 40(a)(ia) of the Act. On the contrary, the Ld AR demonstrated that the details of professional charges as well as advertisement expenses were duly furnished before the AO during the course of original assessment proceedings. The assessee has also submitted before the AO that some of the payments are not liable for deduction of tax at source since the payments made to each of the parties was less than the threshold limit prescribed in the respective section for deduction of tax at source. Under the set of facts, it cannot be said that there were mistakes apparent from record in the assessment order passed by the AO under section 143(3) of the Act. As submitted by the assessee, the AO has entertained the view that there were mistakes apparent from record only from the objections given by Internal Audit Party and not from the assessment record. Accordingly, we are of the view that the very initiation of rectification proceeding under section 154 of the Act is bad in law and accordingly the impugned rectification order is liable to be quashed. Accordingly, we set aside the order passed by Ld CIT(A) and quash the rectification order passed by the AO under section 154 of the Act. Appeal of assessee allowed.
|