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2022 (5) TMI 1218 - AT - Income TaxRectification of mistake u/s 154 - Ex-parte appeal Decided by CIT-A - disallowances u/s 43B of the Act as well as under section 40A(7) - whether adjustment so made by the CPC cannot be taken up in appeal against the order passed by the CPC under section 154 as against 143(1) - As submitted assessee has deposited the employees contribution towards PF/ESI before the due date of filing of the return of income and provision of Gratuity disallowed under section 40A(7) of the Act while processing the return of income, the CPC has failed to take into consideration the fact that the assessee has suo moto disallowed the said sum under section 43B - HELD THAT:- Given the fact that the case of the assessee has been decided ex-parte qua the assessee and we do not have the benefit of findings of the ld. CIT (A) in this case, we deem it fit to set aside the matter to his file to decide the same afresh as per law after providing opportunity to the assessee. Before parting, we would like to state that against the adjustments which have been made by the CPC while processing the return of income under section 143(1), the assessee has claimed to have moved rectification application under section 154 of the Act. Given the fact that the adjustment relates to disallowances under section 43B of the Act as well as under section 40A(7) of the Act which are clearly apparent from the tax audit report filed by the assessee along with its return of income, these matters are clearly apparent from the record and clearly fall within the domain of rectification under section 154 of the Act. Therefore, we direct the ld. CIT(A) to examine this matter afresh after providing reasonable opportunity to the assessee.
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