9911796707
TMI Blog2016 (6) TMI 79X X X X Extracts X X X X X X X X Extracts X X X X ..... called as 'the Act') on 22.12.2010. At the time of completion of assessment u/s 143(3) of the Act, the A.O. made an addition of Rs. 17,76,410/- towards disallowance of labour expenses. Thereafter, the A.O. issued a notice u/s 154 of the Act and proposed to rectify the order. The A.O. issued the notice with the observation that while completing the assessment u/s 143(3) of the Act, an amount of Rs. 48,59,340/- was determined is assessed income after making an addition of Rs. 17,76,410/- towards excess claim of labour expenses for which no bills & vouchers are produced. During the course of assessment proceedings, it was observed that the assessee had agreed for 20% disallowance of total labour expenses of Rs. 1,58,74,000/-. However, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the assessee has agreed for a disallowance of 20% of labour expenses which was duly recorded in the order sheet for which the authorized representative of the assessee has agreed. The A.O., while completing the assessment, by mistake has quantified the disallowance of Rs. 17,76,410/- as against Rs. 39,32,977/-. Therefore, there is a mistake in the assessment order which needs to be rectified u/s 154 of the Act. With these observations, dismissed the appeal filed by the assessee. Aggrieved by the CIT(A) order, the assessee is in appeal before us. 4. The Ld. A.R. submitted that the CIT(A) was not justified in coming to the conclusion that the assessing authority is justified in making rectification by adding the difference amount of Rs. 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. The said mistake was pointed out from the assessment records, which can be rectified u/s 154 of the Act. 6. We have heard both the parties and perused the materials available on record. The A.O. rectified the assessment order passed u/s 143(3) of the Act by invoking provisions of section 154 of the Act. The A.O. was of the opinion that there is a mistake in the assessment order passed u/s 143(3) of the Act which needs to be rectified u/s 154 of the Act. The A.O. observed that at the time of completion of assessment u/s 143(3) of the Act, the disallowance of labour charges was wrongly added. It was further observed that the assessee has agreed for disallowance of 20% labour charges, which was recorded in the order sheet for which the aut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt by including the records that is available with the A.O. In the present case on hand, on perusal of 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 Rs. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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