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TMI Blog2024 (2) TMI 536X X X X Extracts X X X X X X X X Extracts X X X X ..... e ADIT, CPC dated 19.09.2022 in relation to intimation dated 23.12.2021 processed by CPC under section 143(1) of the Income Tax Act, 1961 (the Act) concerning A.Y. 2020-21. 2. The grounds of appeal raised by the assessee read as under: i. The order u/s 154 of the IT Act passed by the Ld. AO- CPC is bad in law and wrong on the facts and is therefore unstainable in law. ii. That the ld CIT(A) has erred in sustaining the addition of contingent liability of Rs. 7,82,85,769/- made by the Ld AO- CPC in order u/s 154 of the IT Act. iii. The Ld. CIT(A) did not consider the fact the appellant had neither claimed this contingent liability, being Entertainment Tax, as expenses in its Income and Expenditure account, nor collected or charged the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee filed rectification application under section 154 of the Act through e-filing portal on 15.07.2022. However, the AO - CPC passed order under section 154 of the Act dated 19.09.2022 confirming the additions made under section 143(1) intimation. 5. Aggrieved, the assessee preferred an appeal before CIT(A) against the aforesaid order passed under section 154 of the Act. The CIT(A) however, declined any relief. 6. Further, aggrieved, the assessee preferred appeal before the Tribunal. 7. In the course of hearing before the Tribunal, the assessee adverted the audited financials statement and pointed out that in the 'Notes Forming Part of the Accounts' for the year ended 31st March 2020 annexed thereto, the assessee has disclosed an amoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds narrow scope of jurisdiction in rectification proceedings under section 154 of the Act, the learned Counsel fairly volunteered withdrawal of the appeal, if so permitted by the Tribunal with a leave to file fresh appeal against the original order / intimation passed under section 143(1) of the Act before the CIT(A). The learned Counsel simultaneously insisted that the addition cannot be made when the expenditure has not been claimed at all while determining the taxable income. 7. The learned DR for the Revenue did not offer any fresh comment and relied upon the first appellate order in this regard. 8. We have carefully considered the rival submissions and perused the material available on record. The correctness of upward adjustment on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nifest and self-evident error is one which does not require elaborate discussion of evidence or arguments to establish it. An error cannot be said to be apparent on the face of record if one has to travel beyond the record to see whether the action is correct or not. An error apparent from record means an error which strikes one on mere looking and does not need any serious justification. It is trite that the power of rectification can be exercised only when the mistake which is sought to be rectified is an obvious and patent mistake which is apparent from record in distinction to a purported mistake which requires to be established by arguments and long drawn process of reasoning on points on which there may possibly be two opinions. 9.3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s warranted has not been addressed on merits, we consider it expedient to grant liberty to the assessee in the interest of fair play to pursue appellate remedy against the original proceedings in accordance with law if so legally advised. It shall be open to the assessee to raise an appropriate plea for condonation of delay owing to lapse of time due to ongoing rectification proceedings before the appellate authorities. The first appellate authority shall take into account such bonafides while admitting belated appeal against order under Section 143(1) for adjudication on merits and shall take a benign view in the matter. 10. In terms of delineations noted above, the appeal of the assessee is dismissed in limine as infructuous. Order pron ..... X X X X Extracts X X X X X X X X Extracts X X X X
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