INCOME TAX ACT, 1961

Section 154

Rectification under section 154 - Debatable issue - Maintainability of rectification application -

Assessee contended that CIT(A) erred in upholding order of AO issued under section 154 on issue which was highly disputed and in any case where two views were possible and the view-taken in assessment passed under section 143(1) was a possible view. Assessee-firm had not deducted TDS from labour charges paid. AO made addition under section 40(a)(ia) and assessee contended that payee had included entire interest paid by the assessee in its total income and filed return of income accordingly. Held: The issue was considered by jurisdictional High Court in case of CIT v. Thomas George Muthoot [(2015) 235 taxman.com 246 (Ker) : 2015 TaxPub(DT) 3322 (Ker-HC)]. Being so, within jurisdiction of Kerala High Court, issue in dispute could not be said to be a debatable issue. Therefore, AO was justified in making addition under section 40(a)(ia) vide proceedings under section 154. Accordingly, ground of appeal of assessee was dismissed.

REFERRED : CIT v. M/s. Alom Extrusions Limited (2009) 319 ITR 306 (SC) : 2009 TaxPub(DT) 2109 (SC) CIT v. Shraddha & S.S. Kale, Joint Venture (2015) 377 ITR 635 (Bom.) : 2015 TaxPub(DT) 3482 (Del-HC) CIT v. Ansal Land Mark Township (P) Ltd. (ITA Nos. 160 & 161/2015, dated 26th August, 2015 (Del.) Thomas George Muthoot v. CIT (2015) 235 taxman.com 246 (Ker) : 2015 TaxPub(DT) 3322 (Ker-HC) and CIT v. Ansal Landmark Townships (P) Ltd. [Diary No(s). 24249/2017, dt. 25-8-2017] : 2017 TaxPub(DT) 4147 (SC)

FAVOUR : Against the assessee

A.Y. :

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