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TMI Blog2023 (5) TMI 210X X X X Extracts X X X X X X X X Extracts X X X X ..... ity. Therefore, to ascertain correct state of affairs, we confronted the Ld. AR about the details of intimation dated 10.04.2014 but the Ld. AR could not spell out satisfactorily. Hence, in absence of clear details coming before us, we are not satisfied with the claim projected by assessee in this ground; resultantly we dismiss this ground. Quantum of disallowance - AO has rightly made an addition @ .5% of the total expenditure AND mention of 5% by AO in the assessment-order is a mistake - HELD THAT: - Fi rstly we observe that before making the impugned disallowance, the AO show-caused the assessee to make a reasonable amount of disallowance. Thus, the thrust of AO was on amount and that too reasonable . Secondly , we observe that there was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 31/03/2014 and rectification order u/s 154 was passed on 07/05/2018; whereas rectification order was to be passed within 4 years from the end of financial year in which original order was passed; therefore, it is time barred order and same needs to be quashed. 2. In AO's rectification order u/s 154 regarding disallowance of salary and wages of Rs. 24,15,000 also confirmed by the CIT(A) was erred legally and on facts. It was also not the intention in the original assessment order and nor consistent with previous and preceding year's assessment orders." 2. Heard the learned Representatives of both sides at length and case records perused. 3. Briefly stated the facts are such that the assessment of assessee for the relevant AY 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 24,15,000/- was made. The reason of the rectification, as pointed out by Ld. AR, is such that in the original assessment-order, the AO has talked of "5%" disallowance out of "Salary & Wages Exp." of Rs. 5,36,63,948/- according to which the amount of disallowance comes to Rs. 26,83,197/- but the AO has made disallowance of Rs. 2,68,197/- only which comes to ".5%". Hence, the differential of Rs. 26,83,197 (-) 2,68,197 = Rs. 24,15,000/- was added. 5. Aggrieved, the assessee went in first-appeal but did not succeed. Now, the assessee has come in this appeal on the grounds mentioned in the beginning. We proceed to adjudicate these grounds in seriatim. Ground No. 1: 6. In this ground, the assessee claims that the rectification-order dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e an addition of Rs. 2,68,197/- which is ".5%" of the total expenditure of Rs. 5,36,63,948/-. He submitted that the mention of "5%" by AO in the assessment-order is a mistake; the amount of Rs. 2,68,197/- is very much correct. Ld. AR raised following contentions to support such a conclusion: (i) Had the AO intended to make a disallowance of Rs. 26,83,197/-, it would have easily caught his eye while drafting the assessment-order itself. (ii) Para No. 11 of the assessment-order clearly reveals that the AO show-caused the assessee to make a "reasonable amount" of disallowance. The disallowance of Rs. 2,68,197/- is reasonable but certainly the disallowance of Rs. 26,83,197/- cannot be reasonable. (iii) The cases of assessee of preceding a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee noticed the quantum of disallowance at Rs. 2,68,197/- which was very much correct as well as intended during assessment-proceeding. Therefore, the assessee was not concerned with "5%" or ".5%" and did not visualise to file any rectification-application. Ld. AR submitted that even otherwise, non-filing of rectification application by assessee cannot be treated as assessee's acceptance to "5%". 13. We have considered rival submissions of both sides and given a mindful thought. After a careful examination, firstly we observe that before making the impugned disallowance, the AO show-caused the assessee to make a "reasonable amount" of disallowance. Thus, the thrust of AO was on "amount" and that too "reasonable". Secondly, we obser ..... X X X X Extracts X X X X X X X X Extracts X X X X
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