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TMI Blog2024 (5) TMI 856X X X X Extracts X X X X X X X X Extracts X X X X ..... ut the assessee has made clear in application u/s.154 of the Act that it is a typographical mistake but the very applicability of section 269SS in assessee s case will not/should not have been applied. Thus, the rectification while giving the scope of 69A has not taken into any evidences as regards credibility of the loan, the source of the fund of the loan, identity of the parties for which the details are required and merely on the basis of PAN, voter card, form no. 16 and Addhaar card of the details of depositors will not suffice the said addition. These inquiries and verifications have not been done by the AO while making the said single line observation in the rectification order. These aspects were totally ignored by the CIT(A). Thus, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cified in section 69A are also not getting satisfied in the case of appellant. Total Rs. 3,20,02,883/- ITA No. 1031/Ahd/2023 1. The Ld. CIT(A) NFAC erred on facts and in law in confirming action of Assessing Officer invoking provisions of section 154 of the Act without appreciating that the actions of the Assessing Officer are not permissible for rectification u/s 154 of the Act. 2. The Ld. CIT(A)-NFAC erred on facts and in law in confirming action of Assessing Officer in enhancing tax liability of appellant through rectification order passed u/s 154 by applying provisions of section 115BBE, as amended by Taxation Laws (Second Amendment) Act, 2016 assented by the Hon'ble President on 15-12-2016 without appreciating that neither the inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 61 was also written with the assessment order passed. The assessee filed rectification application dated 04-10-2020 which was received by the Assessing Officer on 06-01-2020, thereby stating that the assessee is co-operative bank as per provisions of section 269SS explanation (i) which read banking company means a company to which the provisions of Banking Regulation Act 1949 applies and including any bank or banking institution referred to in section 51 of the Act. The said provision of this section shall not apply. After verification of section 269SS and explanation (i) of the Income Tax Act, the said section was rectified by the Assessing Officer and corrected the same thereby observing that the word used on account of 269SS, the Income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have rectified the inadvertent error crept in while making submissions if any. The ld. A.R. submitted that the Assessing Officer has not given the proper hearing for demonstrating the assessee co-operative bank related to how section 69A addition will not be applicable in assessee s case. In fact, the annexure 7 mentioned by the Assessing Officer was not uploaded in the submissions of the assessee and therefore the Assessing Officer should have show cause the assessee to seek clarification in the matter before making any addition without giving any opportunity of hearing. The ld. A.R. submitted that the action of the Assessing Officer in case that the assessment has been made in pre-determined manner which is further evident from the fact t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 115BBE is applicable to assessment year 2017-18 in view of the decisions of ITAT Indore Bench in case of Chandan Garments Pvt. Ltd. vs. PCIT being ITA 125/Ind/2022 assessment year 2017-18 order dated 02-12-2022. The ld. Departmental Representative further submitted that mentioning of the wrong section is not fatal to making assessment under any other section and reliance is placed on the the following decisions:- i. PV Ajay Narayanan v ITO 57 TTJ 159 (Bangalore) ii D.M. Neterwalla v. Commissioner 122 ITR (Bom) The ld. Departmental Representative further submitted that the CIT(A) has categorically given a finding that the assessee has specifically stated that the Assessing Officer cannot charge section by invoking section 154 of the Act bu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d not have been applied. Thus, the rectification while giving the scope of 69A has not taken into any evidences as regards credibility of the loan, the source of the fund of the loan, identity of the parties for which the details are required and merely on the basis of PAN, voter card, form no. 16 and Addhaar card of the details of depositors will not suffice the said addition. These inquiries and verifications have not been done by the Assessing Officer while making the said single line observation in the rectification order. These aspects were totally ignored by the CIT(A). Thus, it will be appropriate that whether the applicability of section 69A is justifiable or not in assessee s case and whether the assessee proves the nomenclature of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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