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TMI Blog2014 (3) TMI 177X X X X Extracts X X X X X X X X Extracts X X X X ..... cts and in law in dismissing the application u/s 154 of the I.T. Act without appreciating the correct facts that the outstanding opening balance of M/s Shyam Agro Industries represents old purchases and remain payable at the end of the year and thereby the provisions of section 41(1) are wrongly invoked and applied. 2. Because the Learned CIT(A) has erred on fats and in law in not appreciating the assessee's contention based on apparent facts on record and settled law. 3. Because the mistake of facts as well as law, being apparent from records, needs rectification and consequential relief." 3. To adjudicate this appeal, only a few material facts need to be taken note of. The assessee before us is a manufacturer of automobile parts. In th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that "I have gone through the assessment order as well as the submissions made by the ld. A.R. in this regard and in my opinion, as the assessee has failed to bring any material on record that the liability still subsists, the A.O. has rightly invoked the provisions of section 41(1) of the Act." The assessee then moved rectification petition before the ld. CIT(A) on the ground that it is a mistake apparent from record to hold that the assessee failed to bring any material on record that the liability still subsists. It was pointed out that out of Rs.2,08,400/- representing the said opening balance, the ld. CIT(A) has already given relief of Rs.48,900/- which was paid during the year and "balance remains payable as also verifiable from sheet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of the facts of the case by him and his interpretation of provisions of law relating to the section 41(1) OF Income Tax Act which is now being disputed by the Ld. AR on the basis of certain decisions cited by him, such decision of my predecessor cannot be said to be mistake apparent from the record. Therefore, after considering the argument of the Ld. AR, I am of the opinion that if it is felt by the appellant that there is any mistake in taking decision by my predecessor Ld. CIT(A)-II, Agra in his appellate order dated 01.03.2012 contrary to judicial decisions as relied upon by the Ld. AR, an appeal can be filed to Hon'ble ITAT, Agra against the appellate order dated 01.03.2012 but such mistake cannot be rectified under the provisions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ro Industries and the ld. CIT(A) was of the view that the assessee could not substantiate existence of the said party. We are not concerned with the correctness of this approach nor are we dealing with the question whether section 41(1) can be applied in such a situation, but suffice to note that, rightly or wrongly, the CIT(A) was of the opinion that the assessee has failed to establish existence of the liability. Such a conclusion was inherently a subjective exercise. In our considered view, therefore, whether ld. CIT(A) reached this conclusion rightly or wrongly and whether balance sheet entry itself was sufficient to dislodge this conclusion is beyond the inherently limited scope of mistakes which can be rectified under section 154 of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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