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TMI Blog2018 (12) TMI 909X X X X Extracts X X X X X X X X Extracts X X X X ..... f section 43B in a proceeding u/s.154 of the Act is impermissible. TDS u/s 194C - Addition on account of job work charges by invoking the provisions of section 40(a)(ia) of the Act in a proceedings which was initiated u/s.154 - Held that:- A perusal of provisions of section 194C shows that a person is liable to deduct ITDS when a contract for work is of an amount more than ₹ 30,000/- or where payment for work is made to a person more than ₹ 75,000/- during the financial year. The Assessing Officer has brought no material on record to show that either of the above condition was satisfied in the instant case. Therefore, it is not open to AO in a proceedings u/s.154 to hold that the assesse was obliged to deduct ITDS on job w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s not liable for making deduction U/s 194C, as such, neither of the reasons were mistakes apparent from record. 4. For that the order was passed U/s 144 r.w.s. 143(3), as such, the mistake said to have been apparent from record is incorrect. Ld. A.O. issued notice U/s 154, two years after completion of the assessment for looking to the assessment record. The order passed U/s 154 was ab initio void on merits as there were no valid reasons for addition made. 5. That interest u/s 234A and 234B should have been charged on the returned income and not on the assessed income following the decision of Hon'ble Jharkhand High Court.. 3. In the instant case, the Assessing Officer made an addition of ₹ 9,60,672.97 relating to s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same to the income of the assesse in view of the provisions of section 43B of the Act. It is an established position that disallowance u/s.43B can be made of an amount which has been claimed as deduction by the assesse. In other words, when deduction has not been claimed, question of making disallowance by invoking the provisions of section 43B does not arise. 8. In the instant case, no material has been brought on record to show that ₹ 9,60,672/- as service tax expenditure was claimed by the assesse. Thus, disallowance u/s.43B can be made only of an amount which was a sum payable. The relevant law under the service tax was payable on cash basis. No material is available to show that the liability of ₹ 9,60,672/- as service ..... X X X X Extracts X X X X X X X X Extracts X X X X
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