Case Law Details
Shiv Shakti Traders Vs ACIT (ITAT Delhi)
Overlooking the mandatory provision of law in the original assessment is apparent mistake of law which is rectifiable under section 154.
In the case before us it was brought to the notice of the Ld. AO by RAP that in the original assessment made by him, he overlooked the mandatory provision of section 40A(3) of the Act. Ld. AO, therefore, after giving opportunity to the assessee passed the rectificatory order making the impugned disallowance. Assumption of power by the Ld. AO under section 154 was agitated by the assessee before the Ld. CIT(A) as also before us on the ground that the impugned disallowance is a debatable issue and hence outside the ambit of section 154 of the Act. We are unable to subscribe to this view. Overlooking the mandatory provision of law in the original assessment is apparent mistake of law which is rectifiable under section 154 as held in the case of the ITO vs. Ashok Textile Limited and Janatha Steel Mills Pvt. Ltd. (supra). The reliance placed by the assessee on the judgment of CIT vs. Lucas TVS Ltd. 249 ITR 306 (SC) is misplaced. In that case the issue was of reopening the assessment under section 147(b) on the opinion of the audit party. We accordingly, reject the ground of the assessee objecting to the assumption of jurisdiction by the AO under section 154 of the Act.
FULL TEXT OF THE ORDER OF ITAT DELHI
The appeal by the assessee is directed against the order dated 28.2.2019 of the Ld. Commissioner of Income Tax (Appeals), Ghaziabad (“CIT(A)”) pertaining to the assessment year 2013-14.
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