TMI Blog2022 (3) TMI 901X X X X Extracts X X X X X X X X Extracts X X X X ..... that the two issues raised by the petitioner for rectification has been gone into by the assessing authority. While on the issue pertaining to unexplained cash credit and consequently the addition under Section 69 with view taken is that this is not a mistake apparent on the face of the record and therefore, rectification u/s 154 of the Act is not warranted. Regarding disallowance u/s 40 (i)(a) is concerned, the same has been rectified in the manner indicated above. The power of rectification of an order of assessment u/s 154 lies within a very narrow compass. The order to be rectified must be an order which reflects an error apparent on the face of the record. The error or mistake which would require determination after long drawn hearing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rable High Court may deems fit in the circumstances of the case. 3. Petitioner is an assessee under the Income Tax Act, 1961 (briefly the Act hereinafter) assessed under the jurisdiction of the first respondent. Status of the petitioner as assessee is that of a Trust. For the assessment year 2017-18, first respondent as the assessing officer passed assessment order dated 23.12.2019 under Section 143(3) of the Act. By the said assessment order, two additions were made, one on account of unexplained cash credits under Section 69 of the Act amounting to ₹ 4,02,12,000/-, and the second addition was on account of lack of information regarding Tax Deducted at Source (TDS) with the Central Government. Under this head, an amount of ₹ 4, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ectification application for deletion of the additions made under Section 69 read with Section 115 BBE of the Act, while passing the order of assessment. Taking the view that this was not a mistake apparent from the record within the ambit of Section 154 of the Act, rectification application was rejected. Aggrieved thereby, present writ petition has been filed seeking the relief as indicated above. 7. On 09.11.2021, the following order was passed: Heard learned counsel for the parties. Mr. J.V. Prasad, learned Standing Counsel for Income Tax, to obtain instructions regarding order passed on the rectification petition filed by the petitioner following the order passed by this Court dated 03.02.2020 in WP.No.1734 of 2020. If any order has bee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t upon the addition made on the aforementioned grounds, the total income was assessed at ₹ 10,98,35,440 and assessee was asked to pay the demand of ₹ 6,42,43,723 vide demand notice dated 23.12.2019 issued under section 156 of the Income Tax Act, 1961. On perusal of the Material on record, inter-alia, rectification petition dated 26.12.2019 petition filed by the assessee and Form 24 Q and Form 26Q submitted during the assessment proceedings, it is found that payments made to the various parties and tax deducted thereof has been clearly reflected therein. Hence, I am of view that disallowing 30 percent of the expenditure of ₹ 15,55,99,680/- pertaining to salary, rent, contract and professional fee as per the section 40 (a) ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fraid, we can accept the submission made by learned counsel for the petitioner. Rectification order dated 29.11.2021 came to be passed during the pendency of the present writ petition. Earlier order dated 28.08.2021 would have to be read in conjunction with the order dated 29.11.2021. On a conjoint reading of both the orders, it is evident that the two issues raised by the petitioner for rectification has been gone into by the assessing authority. While on the issue pertaining to unexplained cash credit and consequently the addition under Section 69 of the Act the view taken is that this is not a mistake apparent on the face of the record and therefore, rectification under Section 154 of the Act is not warranted. Regarding disallowance unde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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