2024 (3) TMI 606

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....670, for the assessment year 2019-20, arising out of the rectification order 27.07.2020 u/s 154 of the Income-tax Act, 1961 (hereinafter referred as the "Act"), passed by the ADIT, CPC, Bengaluru(hereinafter referred in short as "Ld. AO"). 2. Heard and perused the record. 3. Facts in brief are in regard to disallowance made on account of EPF and ESI amounting to Rs. 73,18,988/- by learned AO vide order dated 27.07.2020 u/s 154 of the Act the assessee had claimed before the learned CIT(A) that it was beyond the jurisdiction and powers under Section 154 of the Act to make an addition for which expenditure was allowed in assessment u/s 143(1) of the Act. It is claimed that the same cannot be considered to be an error apparent on record t....

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.... with regard to merits of addition but whether such addition could be made by learned AO by exercising powers u/s 154 of the Act. The matter of fact is that learned AO had accepted the return filed u/s 139 of the Act vide intimation u/s 143(1) of the Act dated 24.11.2019. The same was based on the tax audit report in form no. 3CB and 3CD. Thus, the question of delay in deposit of the employees' contribution was very much in the assessment records upon which the intimation u/s 143(1) was served upon the assessee. As at relevant time there was law in favour of assessee allowing such expenditure so it has to be concluded that assessee was benefited by same and failure to follow a divergent view in favour of Revenue cannot be considered to be a....