The Tribunal relying upon the decision of Hon’ble Supreme Court in T.S. Balaram, ITO v. Volkart Brothers [1971] 82 ITR 50,held that the AO had grossly erred in invoking the provisions of section 154 of the Act for the purpose of making disallowance u/s. 40A(3) of the Act, therefore, the order therein passed by him cannot be sustained and is accordingly liable to be vacated. (AY. 2013-14)
Poonam Mittal (Smt.) v. ITO (2022) 215 TTJ 29 (Asr) (UO)/ 138 taxmann.com 380 (Asr) (Trib)
S. 154 : Rectification of mistake-Mistake apparent from the record-Disallowance of an amount under section 40A(3) cannot be brought within realm of a mistake which could be held as glaring, patent, apparent and obvious from record, thereby rendering assessment order passed by Assessing Officer amenable for rectification under section 154 of the Act. [S. 40A((3), R.6DD]