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TMI Blog2025 (3) TMI 42X X X X Extracts X X X X X X X X Extracts X X X X ..... ead with Rule 8D of the Rules is jurisdictionally defective and legally unsustainable as held in judgements delivered in the case of U K Paints India Pvt. Ltd [2024 (12) TMI 650 - DELHI HIGH COURT] and H. T. Media Ltd.[2017 (8) TMI 962 - DELHI HIGH COURT] Sec 154 of the Act empowers the AO to rectify the mistake of apparent nature. A mistake if any, which requires long drawn process of reasoning ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n filed at the instance of the assessee seeking to assail the First Appellate order dated 14.08.2024 passed by Ld. Commissioner of Income Tax (A)-26, New Delhi ["CIT(A)"] u/s 250 of the Income Tax Act, 1961 ["the Act"] arising from the assessment order dated 20.04.2021 passed u/s 143(3) of the Act pertaining to assessment year 2018-19. 2. As per the grounds of appeal, the assessee has challenged ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee also pointed out to the AO that suo-motto disallowance of INR 39,07,599/- has been carried out. Based on the information made available, the AO passed order under s. 143(3) of the Act without resorting to any disallowance under s. 14A of the Act. However, after the completion of the assessment, a notice dated 29.04.2022 was issued under s. 14A of the Act. As per the show cause notice, it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owards disallowance under s. 14A is highly debatable and not a simple mathematical calculation. 4. The Ld. Counsel next submitted that once suo-motto disallowance has been carried out, the provision of s.14A can be invoked only after recording express dissatisfaction with the disallowance offered by the assessee. In the absence of recording any dissatisfaction, invocation of s. 14A read with Rule ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... available under s. 154 of the Act. In the instant case, suo-motto disallowance carried out under s. 14A of the Act by the assessee was sought to be modified and enhanced in the proceedings under s. 154 of the Act. Such disallowance on the face of it, cannot be regarded as apparent mistake contemplated under s. 154 of the Act. The first appellate order thus requires to be set aside and the rectifi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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