TaxTMI 
TaxTMI 
2016 (6) TMI 969
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....Officer u/s 154 of the Income Tax Act, 196/ is beyond jurisdiction and bad in law. " 2. That, on the facts and circumstances of the case, and in law, the Ld.CIT(A) has erred in allowing relief to the assessee company by disposing the case on technical grounds without going into the merits of the case. " 3. That the appellant craves leave to submit additional grounds of appeal, if any, at or before the time of hearing and/or alter, modify, reframe any grounds of appeal at or before the time of hearing." 3. The Assessee is a company. It is engaged in the business of trading in rubber, prophylactics. The assesee filed return of income for A.Y.2005-06 declaring the total loss of Rs. 1,12,03,082/-. The AO completed the assessment u/s 14....
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....ed thereunder or under any standing order, award, contract of service or otherwise. 4. The assessee in reply to the show cause notice, firstly submitted that the mistakes sought to be rectified by the AO cannot be construed as a mistake apparent from the record and therefore jurisdiction u/s 154 of the Act cannot be invoked. It was submitted that a mistake apparent from record must be obvious and patent mistake and not something which can be established by a long drawn process of reasoning. A decision on a debatable point of law is not a mistake apparent from recovery. It was submitted that points which are not examined on facts or in law, cannot be dealt with as a mistake apparent from record. As held in CIT - Vs - Hero Cycles (P) Ltd. ....
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....ity u / s 36(1)(va) read with section 43B of the Act has since been set at rest by various IT ATs, High Courts as well as Supreme Court. It has been held that where the assessee has failed to make payment of employee's contribution to PF /ESI within due date as provided in Sec.36(1)(va) of the Act but has made the said payment before due date of filing of return U / s 139, no disallowance of such payment can be made U / s 43B. 5. The AO however passed an order u/s 154 of the Act dated 19.08.2011 without dealing with the stand taken in the reply to the show cause notice u/s 154 of the Act referred to above and merely holding that the assessee failed to place on record or to show evidences on the basis of which prior period loss could ....
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....claimed and allowed as deduction in the assessment proceedings u/s 143(3) of the Act, could be allowed or not in the present assessment year on payment basis cannot be examined in the proceedings u/s 154 of the Act. In any event the claim of the assessee that there was actual payment of the aforesaid sum during the previous year and the loss in question is allowable as deduction u/s 43B(c ) of the Act was not considered by the AO in the order u/s 154 of the Act. In any event this is a debatable issue and therefore proceedings u/s 154 of the Act cannot be appropriate. As far as the employee's contribution to PF and ESI is concerned the question is as to whether analogy of section 43B of the Act is applicable to the employer's contribution ca....