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Section 154 of the Income-tax Act, 1961 - Rectification of mistaken - Apparent from records Where, admittedly, on date when proceedings under section 154 were taken, views of courts in country on issue involved (carry forward and set- off of amounts assesseed under section 115J) were not uniform, rectification proceedings were unsustainable as issue involved was an arguable one. [A.Y. 1989-90]. An order under section 154 was passed holding that the assessee was not entitled to carry forward the amounts assessed under section 115J for set off for the subsequent years. Noting the fact that the of the Supreme Court on the issue was delivered only in the year 2002 reported in Karnataka Small Scale Industries Development Corporation Ltd. v. CIT [2002] 258 ITR 770, and, hence, a debatable issue was involved when section 154 proceedings were taken, the Tribunal set aside the rectification order. Held that the proceedings for rectification were taken in 1993. Admittedly, on the date when the proceedings under section 154 were taken, the views of the courts in the country on the issue involved were not uniform. Given the scope of section 154 that the arguable issue would not come for rectification of a mistake, the revenue could not go for rectification of an error, which was arguable issue, hence, the proceedings were totally unsustainable. JUDGMENT Mrs. Chitra Venkataraman, J.-This appeal is by the Revenue, challenging the order of the Tribunal, rejecting the plea on question of rectification, on the basis of the decision of the Supreme Court delivered subsequently in Karnataka Small Scale Industries Development Corporation Ltd. v. CIT reported in [2002]258 ITR 770. This appeal relates to the assessment year 1989-90. The total income of the assessee was assessed under section 115J of the Income-tax Act, 1961. Finding that the correct loss was to be assessed at Rs. 16,02,388 as against the relief granted at Rs. 41,71,492, the assessing authority issued notice under section 154 of the Act, to pass an order thereby rectifying the error pertaining to the loss carried forward. The order passed was set aside originally in appeal, directing a remand to give a reasonable…

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