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TMI Blog2024 (1) TMI 691X X X X Extracts X X X X X X X X Extracts X X X X ..... the Revenue : Sri Madhukar Aves, Sr. AR ORDER PER S. BALAKRISHNAN, ACCOUNTANT MEMBER : This appeal filed by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [CIT(A)-NFAC] in DIN & Order No. ITBA/NFAC/S/250/2022-23/1050512950(1), dated 8/3/2023 arising out of the order passed u/s. 154 r.w.s. 143(3) of the Income Tax Act, 1961 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 40A(3) of the Act and Rs. 83,184/- towards disallowance of prior period expenses. Aggrieved by the above additions, the assessee filed an appeal before the Ld. CIT(A)-NFAC. 3. On appeal, the Ld. CIT(A)-NFAC considering the submissions made by the assessee, upheld the order of the Ld. AO by dismissing the appeal of the assessee. Aggrieved by the order of the Ld. CIT(A)-NFAC, the assessee is in a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and disallowance of prior period expenses wherein the scope of rectification u/s. 154 of the Act was challenged by the assessee. Before us, the Ld. AR argued that the Ld. AO has made a suo motto order u/s. 154 of the Act. The Ld. AR referred to para 5.1 of the original assessment order wherein the Ld. AO has referred to the expenses incurred in cash and supported by self-made vouchers. The Ld. AO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be set-aside. 6. Per contra, the Ld. Departmental Representative relied on the order of the Ld. Revenue Authorities and argued in support of their decision. 7. We have heard both the sides and perused the material available on record as well as the orders of the Ld. Revenue Authorities. Admittedly, the Ld. AO in his original assessment order dated 23/12/2018 passed u/s. 143(3) of the Act has dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made by the Ld. AO, no further specific disallowance can be made under any other provisions of the Act. We therefore find merit in the argument of the Ld. AR on this issue of disallowance u/s. 40A(3) and prior period expenses are beyond the scope of rectification u/s. 154 of the Act when the Ld.AO has thoughtfully considered these expenses and has made an ad-hoc disallowance of 10% while framing ..... X X X X Extracts X X X X X X X X Extracts X X X X
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