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2024 (2) TMI 536 - ITAT DELHIScope of jurisdiction in rectification proceedings u/s 154 - correctness of upward adjustment on account of ‘contingent liabilities on the basis of Tax Audit Report for the purposes of drawing intimation under section 143(1) r.w.s 154 - HELD THAT:- In view of the narrow and limited scope of section 154 of the Act, it is difficult to say that CPC-AO has committed apparent error per se within the scope of section 154 of the Act while adopting the figures towards inadmissible expenses debited to P&L account as certified by the Tax Auditor. In the wake of guidance provided by Tax Audit Report, the CPC do not appear to have committed any apparent error while making adjustment under section 154 of the Act. Any position to be taken contrary to the Tax Audit Report being in the realm of subjectivity is plainly opposed to the basic tenets of section 154 of the Act. Therefore without expressing our opinion on merits, we are convinced that alleged error sought to be pointed out on behalf of the assessee does not fall within the sweep of prima facie mistake of apparent nature envisaged under section 154 - The appeal of the assessee in rectification proceedings is thus not maintainable and hence requires to be summarily dismissed at the threshold as fairly accepted on behalf of the assessee owing to narrow scope of such proceedings. Thus having regard to the fact that plea of the assessee that such expenses/liability has not been claimed at the first instance and thus no disallowance is warranted has not been addressed on merits, we consider it expedient to grant liberty to the assessee in the interest of fair play to pursue appellate remedy against the original proceedings in accordance with law if so legally advised. FAA shall take into account such bonafides while admitting belated appeal against order under Section 143(1) for adjudication on merits and shall take a benign view in the matter.
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