Mr X is a manufacturer of plastic articles and was assessed u/s. 143(3) of the Act. The assessee has sold certain old machinery used for manufacturing purposes during the year. Part of the sold machinery was rejected by way of credit note and was duly accounted for in the books. However, while passing the order, AO has added certain amount on account of profit on sale of machinery on presumptive basis though the machiney sold was rejected and there was no actual delivery of the same nor there was any consideration received.
Can such order be rectified u/s. 154? Or only remedy is to file an appeal?
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