2025 (3) TMI 219

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..... deduction u/s 80JJAA cannot be disallowed without examining the relevant facts as well as law on the point. Accordingly disallowance of deduction u/s 80JJAA of the Act by the CPC u/s 154 of the Act is not valid as the said issue is beyond the scope of provisions of section 154 - Appeal of the assessee is allowed.
Shri Vijay Pal Rao, Vice-President AND Shri Manjunatha, G. Accountant Member For the Assessee : Shri K.A. Sai Prasad, CA For the Revenue : Shri Srinath Sadanala, DR ORDER PER VIJAY PAL RAO, VICE PRESIDENT This appeal by the assessee is directed against the order dated, 27/09/2024 of the learned CIT (A)-NFAC, Delhi, for the A.Y.2021-22. 2. The assessee has raised the following grounds of appeal: "1. Violation of Principle .....

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..... a). The CPC while passing the rectification order dated 7/7/2023 u/s 154 of the I.T. Act, 1961 has rectified the mistake of double disallowance of the amount which was already disallowed u/s 40(a)(ia) of the Act. However, another adjustment was made by disallowing the claim of deduction u/s 80JJAA of the Act. 4. The assessee challenged the action of the CPC before the learned CIT (A) NFAC, but the appeal of the assessee was dismissed vide the impugned order. 5. Before the Tribunal, the learned AR has submitted that the issue of disallowance u/s 80JJAA is a debatable issue and cannot be made in the proceedings u/s 143(i)(a) of the I.T. Act, 1961. He has further submitted that even otherwise, the rectification order was passed by the CPC on .....

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..... finality. Therefore, being a controversial issue, this issue is beyond the ambit of provisions of section 154 of the Act. Various courts of law have time and again held that any controversial issue cannot be entertained u/s 154 of the Act, as the same cannot be stated to be "mistake apparent on record". Therefore, there is no scope in interfering with the Order and it is upheld." 8. Thus, the learned CIT (A) has also observed that the claim of deduction u/s 80JJAA of the Act being a controversial issue is beyond the ambit of provisions of section 154 of the I.T. Act, 1961. It is pertinent to note that the scope of rectification of mistake u/s 154 of the Act is very limited and circumvented only to rectify the mistake apparent from record .....

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