TMI Blog2016 (11) TMI 1632X X X X Extracts X X X X X X X X Extracts X X X X ..... n 11 of the Finance (No.2) Act, 2004 by which sub-clause (ia) had been added to section 40, 1961 did not provide that it was to become effective from the assessment year 2005-06. It had merely said that it was to become effective on April 1, 2005, which should have been meant to refer to the financial year. There was no scope for ambiguity or confusion. The Tribunal had erred in applying the provision of section 40(a)(ia) of the Income-tax Act, 1961 in disallowing the payment made to a contractor without deducting tax at source during the financial year 2004-05, corresponding to assessment year 2005-06. The appeal, as such, is admitted. The question is answered in the negative and in favour of the assessee - GA No.3174 OF 2016 ITAT No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on for rectification under section 154 by a second letter dated 12th December, 2013 and finally by a letter dated 12th November, 2014. The learned Tribunal dismissed the appeal on the ground that:- Firstly the disallowance u/s 40(a)(ia) on account of tanker hire charges was made by AO in the order passed u/s 143(3) on 18.12.2007 and not in the order passed u/s 143(3)/147 on 24.12.2010 and as rightly held by CIT(A), the application filed by the assessee for rectification u/s 154 of the order passed by AO on 18.12.2007 was clearly barred by limitation as per sub-section (7) of section 154 which provides that no amendment u/s 154 shall be made after expiry of four years from the end of the financial year in which the order sought t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al, on the contrary, was of the opinion that the contention of the assessee that the order dated 18th December, 2007 passed under section 143(3) had merged in the order dated 24th December, 2010 under section 143(3) read with section 147 was mis-conceived. The learned Tribunal was entitled to take that view. But the learned Tribunal should have noticed the fact that the assessee had applied for rectification of the order dated 18th December, 2007 on 12th December, 2011, which was well within the period of limitation, which the learned Tribunal did not obviously do. The revenue is a conscientious litigant. The Apex Court has time and again held that the assessing officer should bring to the notice of the assessee provisions which en ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sts with assessee on whom it is imposed by law, officers should (a) draw their attention to any refunds or reliefs to which they appear to be clearly entitled but which they have omitted to claim for some reason or other; (b) freely advise them when approached by them as to their rights and liabilities and as to the procedure to be adopted for claiming refunds and reliefs. 6. The intention of this circular is not that tax due should not be charged or that any favour should be shown to anybody in the matter of assessment, or that where investigations are called for, they should not be made. Whatever the legitimate tax it must be assessed and must be collected. The purpose of this circular is mer ..... X X X X Extracts X X X X X X X X Extracts X X X X
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