2025 (9) TMI 952

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... law, the 14. Commissioner of Income Tax (Appeal) (CTT(Appeal)) and Ld. Assessing officer (AC) has grossly erred in not appreciating that allowability of provision for warranty is a debatable issue and falls outside the limited scope of Section 154 of the Act. Hence, rectification order passed by the 14. AO, disallowing provision for warranty, is without jurisdiction, bad in law and liable to be quashed. 1.1 That on the facts and in the circumstances of the case and in law, the ld. Assessing officer has grossly erred in invoking rectification proceeding u/s 154 of the Act, to review the issue of provision of warranty which has already been examined and adjudicated in the assessment order. 2.0 Without prejudice to Ground No....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ome-tax Act, 1961 (the Act) and therefore, the rectification order passed by the ld. AO disallowing the provisions of warranty is without jurisdiction and liable to be quashed. 04. The facts in brief are that the assessee company is engaged in the business of manufacturing and selling of various types of plant sequencing, continuous weighing, Feeding, proportioning and on-line data handling, batching systems exclusively for industrial applications. The assessee filed belated return of income on 25.03.2015, declaring total income at Rs.11,91,44,400/- under the normal provisions of the Act. The case of the assessee was selected for scrutiny and assessment u/s 143(3) of the Act was framed by the ld. AO vide order dated 29.12.2016. The ld. A....