2016 (9) TMI 1404

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....ct appeal has been filed way back in the month of April, 2014 and couple of opportunities have been given in the past to the ld. AR, the adjournment application was rejected and it was decided to hear the matter based on the written submission filed by the ld. AR dated 26.8.2016 and 31.08.2016 and on the basis of material available on record. The assessee has taken following grounds of appeal: (1) The ld. AO has erred in initiation of proceedings based on AG Objection raised after passing of assessment order u/s 143(3) of the IT Act, 1961 by passing rectification order u/s 154 of the Act. Thus after passing of conscious assessment order, there cannot be any basis for initiation of proceedings on the ground of mistake apparent fr....

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....ve carefully considered the fin dings of the AO as also the submission of the appellant. It may be noted that the appellant has disputed initiation of proceedings u/s 154 of the IT Act for making disallowance of Rs, 24,01,000/- u/s 40(a)(ia) of IT Act on account of non-deduction of TDS on hire charges. It may be noted that the assessee has made payment of Rs. 24,01,000/- on account of hire charges of machinery and there is no dispute on the fact that the TDS was to be deducted on such amount. It is also noted that the facts that such payment was made on account of hire charges is evidenced from the assessment record. The appellant contention is that assessment u/s 143(3) has been made and while completing the assessment a particular NP rate....

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....itten submission filed by the ld. AR which are reproduced as under: The AR of the assessee submitted that the AO has erred in passing of rectification order u/s 154 of the IT Act. The original asstt. Order dated 18.12.2009 was passed as conscious assessment order after considering entire books of accounts. Section 154 is for the rectification of mistake apparent from record. When entire books of records have been verified and conscious order has been passed, then there does not remain any room for rectification of the same. Section 154 is meant for some arithmetical and clerical error which is discern out from assessment order and not for reinitiate of any proceedings which is already consciously concluded. The extent of rectification is ha....

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....ipur Bench, Jaipur vide their order dated 9.10.2015 that no disallowance could be made u/s 40(a)(ia) and 40A(3) of the Act when assessment is made computing income by application of NP rate. Further the ld. AR has relied on the decision of Hon'ble High Court of Kolkatta in the case of CIT vs. Arjun Bhowmick ITA No. 134 of 2014 dated 29.08.2014, decision of Calcutta Bench of ITAT in case of Future Distributors vs. Pr. CIT, Kolkatta ITA No. 277/kol/2016 dated 29.07.2016 and decision of Jaipur Bench of ITAT in case of Banas Sand Toll Tax Collection vs. Department of Income Tax ITA No. 1028/JP/2013 dated 09.10.2015. 2.3 The ld DR is heard who has relied upon the order of ld CIT(A). 2.4 We have heard the rival contentions and perused th....