TMI Blog2023 (6) TMI 45X X X X Extracts X X X X X X X X Extracts X X X X ..... applicable in this case. But the assessee prayed that a reasonable opportunity was denied by the revenue authorities. So,before going for addition u/s 40A(7) the assessee should get a reasonable opportunity before the revenue authority for processing of rectification u/s 154. Accordingly, we remit back the matter to the ld. AO for further adjudication related to the addition made by the CPC. Appeal of assessee allowed for statistical purposes. - I.T.A. No.63/Asr/2023 - - - Dated:- 30-5-2023 - Dr. M. L. Meena, Accountant Member And Sh. Anikesh Banerjee, Judicial Member For the Appellant : None For the Respondent : Dr.Vedanshu Tripathi, Sr. DR ORDER PER:ANIKESH BANERJEE, JM: The instant appeal of the assessee wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... flouts the principle of consistency on the footing that any addition to the income will only affect profit duly entitled for deduction under section 80P. 6. That in the facts and circumstances of the case and in law, the NFAC erred in confirming order passed by AO on the footing that opinions given by the Chartered Accountants are not binding on the assessee or the AO as per assertion of the Union Govt. 7. That in the facts and circumstances of the case and in law, the NFAC erred in confirming the order passed by AO without thoughtfully going into the facts of the case wherein the claim of gratuity was paid as admissible per Common Cadre Rules 1978 notified by the principal body of the assessee. 8. That without prejudice to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he ld. DR first invited our attention in CIT(A) order page 5 para 8 to 12 which are extracted as below: 8. In the Memorandum to the Finance Bill 2016, while inserting sub clause (iv) to section 143(1 )(a), it was explained as under: Clause (a) of sub-section (1) of section 143 provides that, a return filed is to be processed and total income or loss is to be computed after making the adjustments on account of any arithmetical error in the return or on account of an incorrect claim, if such incorrect claim is apparent from any information in the return. In order to expeditiously remove the mismatch between the return and the information available with the Department, it is proposed to expand the scope of adjustments that can be made at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cognizance of any mistake apparent from record and take suitable action to rectify this mistake. I find no infirmity in the order u/s 154 of the I.T. Act. 11. The appellant has not stated as to how the disallowance indicated by the Auditor in Col. 21(e) of Form No. 3CD relating to provision for payment of gratuity not allowable u/s 40A(7) of Rs.3,22,425/- is not disallowable. The appellant has been silent on this issue. That being so, I find that the adjustment made to the total income u/s 154 on account of provision for payment of gratuity is not allowable u/s 40A(7) and is required to be added back. The action of the AO, CPC is upheld. 6. We heard the submission of the ld. DR and relied on the order of revenue authority. During ..... X X X X Extracts X X X X X X X X Extracts X X X X
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