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TMI Blog2020 (12) TMI 225X X X X Extracts X X X X X X X X Extracts X X X X ..... der those circumstances u/s 154 of the Act on the ground that, a mistake apparent on record has crept into the assessment order and the same is being rectified. A mistake apparent on record should be one which is on the face of the record and which does not require consideration of fresh facts. In this case the ld. CIT(A) has directed the AO to take into account a number of facts and then arrive at the question of disallowance. This cannot be done in a proceeding u/s 154. - I.T.A. No. 893/Kol/2019 - - - Dated:- 4-12-2020 - Sri J. Sudhakar Reddy, Accountant Member And Sri S.S. Godara, Judicial Member Sh. Miraj D. Shah, A/R, appeared on behalf of the Assessee Sh. Supriyo Pal, Addl. CIT, appeared on behalf of the Revenue O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the time of crediting their account with interest but she did not. This consequently invites the application of Section 40(a)(ia). A mistake crept in the order dated 29.12.2009 in not disallowing the payment of interest exceeding the maximum amount which is not chargeable to tax. The mistake is apparent from records because mistake of law is also a mistake apparent from records. It has been held by Apex court that the error may be either an error of fact or an error of law. ITO V. Bombay Dyeing Mfg. Co. Ltd. (1958) 34 ITR 143 (SC). Moreover there is no scope for two opinions in application of the Section 40(a)(ia) because this is overriding. The AO overlooked to apply the mandatory provision and the lapse comes under rectification. (CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... those cases and consequently disallowance cannot be made u/s 40(a)(ia) of the Act. He further pointed out that the judgement of the Hon ble Supreme Court in the case of M/s. Hindustan Coca Cola Beverage (P.) Ltd. vs. Commissioner Of Income Tax [2007] 163 Taxman 355 (SC) held that, if the payee had filed its return of income, no further deduction of tax need be made by the payer. He submits that all these entries require verification and hence the order passed u/s 154 of the Act is bad in law. 6. The ld. D/R relied on the order of the ld. CIT(A) specifically at para 4.7 and submitted that the assessee was liable to deduct tax at source on interest payments. He relied on the decision of the Delhi High Court in the case of CIT vs. Ansal La ..... X X X X Extracts X X X X X X X X Extracts X X X X
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