| |
| The Tax Publishers2020 TaxPub(DT) 1312 (Pune-Trib) INCOME TAX ACT, 1961
Section 143(3)
Though, there is no legal bar on challenging an agreed addition, but the fact of the matter is that a valid challenge can be laid before the appellate authorities only if such an admission before the assessing officer was not in consonance with law. If, on the other hand, an admission is based purely on factual matrix, then the assessee cannot challenge the same before the appellate authorities without there being any contrary evidence. The reason is obvious that when an assessee agrees for an addition, the assessing officer does not proceed further in his examination on that issue and closes it by recording the concession of the assessee. The later challenge to such an admission de hors any contrary evidence cannot bring the arms of the clock back enabling the assessing officer to continue from the stage where he left the issue on the assessee agreeing for the surrender. In such a scenario, the assessee cannot be allowed to resile from the agreed addition made before the assessing officer in the backdrop of a pure factual panorama. The extant addition, being an agreed addition on purely factual aspects without any thing contrary, cannot, ergo, be interfered with.
|
Assessment - Agreed addition - Assessee agreed to addition in respect of salary paid to labourers - Later retracted in appellate proceedings
Assessee debited a sum towards Salary to labourers. AO found certain infirmities in the details furnished in as much as the expenses were mostly backed by self-made vouchers. Assessee agreed for ad hoc disallowance before AO, which addition was made and came to be countenanced in the first appeal. Later assessee was aggrieved by confirmation of such an addition Held: When an assessee agrees for an addition, AO does not proceed further in his examination on that issue and closes it by recording the concession of assessee. The later challenge to such an admission de hors any contrary evidence could not bring the arms of clock back enabling AO to continue from the stage where he left the issue on assessee agreeing for surrender. In such a scenario, assessee could not be allowed to resile from the agreed addition made before AO in the backdrop of a pure factual panorama. The extant addition, being an agreed addition on purely factual aspects without any thing contrary could not be interfered with.
REFERRED :
FAVOUR : Against the assessee
A.Y. : 2007-08
 SUBSCRIBE FOR FULL CONTENT
|