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TMI Blog2016 (6) TMI 79X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessment records, we find that the A.O. at the time of finalization of assessment u/s 143(3) of the Act, intend to disallow 20% labour expenses for which the authorized representative of the assessee has agreed. However, while finalizing the assessment order, the A.O. has made addition of ₹ 17,76,410/- without any basis. Therefore, in our considered view, the said mistake is a mistake apparent from the records which needs to be rectified u/s 154 of the Act. The assessee’s contention is that records means only an assessment order is not acceptable for the reason that record means not only the assessment order, but also includes any records available with the A.O. at the time of passing assessment order. Therefore, we are of the o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0% disallowance of total labour expenses of ₹ 1,58,74,000/-. However, while finalizing the assessment, by mistake only an addition of ₹ 17,76,410/- was made. Therefore, opined that there was a mistake apparent from the records in disallowance of labour expenditure which needs to be rectified u/s 154 of the Act. After considering the relevant explanations of the assessee, the A.O. has passed order u/s 154 of the Act and determined total income of ₹ 70,15,907/- by adding difference labour charges of ₹ 21,56,567/-. 3. Aggrieved by the assessment order, the assessee preferred an appeal before the CIT(A). Before the CIT(A), the assessee submitted that the A.O. was erred in passing rectification order u/s 154 of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the assessing authority is justified in making rectification by adding the difference amount of ₹ 21,56,567/-. The A.R. further submitted that the A.O. has rightly quantified that disallowance of ₹ 17,76,410/- after verified bills vouchers with reference to the books of accounts of the assessee. Though there was a discussion at the time of assessment proceedings to disallow 20% labour charges, the A.O. after considering the details quantified the disallowance of ₹ 17,76,410/-. Therefore, the A.O. was not correct in coming to the conclusion that there was a mistake in the order which requires rectification u/s 154 of the Act. It was further argued that the order sheet entry found in assessment records is only a discussi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the assessee has agreed for disallowance of 20% labour charges, which was recorded in the order sheet for which the authorized representative of the assessee has agreed. However, while completing the assessment, an addition of ₹ 17,76,410/- has been made. Therefore, this is a mistake apparent from the records which needs to be rectified u/s 154 of the Act. It is the contention of the assessee that there is no mistake in the assessment order passed by the A.O. u/s 143(3) of the Act. As per the provisions of section 154 of the Act, any mistake which is apparent from the face of the order can only be rectified. The mistake must be obvious and patent. Any mistakes which is highly debatable and which involves complicated process of dis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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