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Section 154 of the Income-tax Act, 1961 - Rectification of mistake - Apparent from records - Assessment year 2004-05 - [In favour of assessee] The Assessing Officer considering that the assessee had not added a sum being provision for doubtful debts and advances/bad debts to the income, issued it a notice under section 154. In reply to the aforesaid notice, the assessee submitted that out of said amount a part of sum only was towards provision. However, the Assessing Officer added the entire amount to the income of the assessee under section 154. The Tribunal deleted the addition made by the Assessing Officer under section 154 on the ground that the Assessing Officer's action was on a debatable issue. Held that from the Commissioner (Appeals)'s and the Tribunal's order it was apparent that the Assessing Officer had added an amount on the ground that doubtful debts and advances were not allowable under section 36(1)(vii). However, the Supreme Court in the case of T.R.F. Ltd. v.CIT [2010] 323 ITR 397 has held that after 1-4-1989, it is not necessary for the assessee to establish under section 36(1)(vii) that the debt had become irrecoverable. To claim deduction under section 36(1)(vii), it is enough if the bad debt is written off by the assessee as irrecoverable in its accounts. Consequently, in view of the aforesaid and the assessee's stand, deduction under section 36(1)(vii) was certainly a debatable issue. Neither a debatable point of law nor failure to apply the correct law to a set of facts can be corrected by way of a rectification under section 154. Consequently, the Tribunal had rightly held that a decision on a debatable point of law cannot be treated as a mistake apparent from the record. CASE REVIEW T.R.F. Ltd. v. CIT [2010] 323 ITR 397 (SC) relied on. CASES REFERRED TO T.R.F. Ltd. v. CIT [2010] 323 ITR 397 (SC) and Mepco Industries Ltd. v. CIT [2009] 319 ITR 208(SC). Ms. Prem Lata Bansal for the Appellant. Ms. Kavita Jha, for the Respondent. JUDGMENT Manmohan, J. - The present appeal has been filed under section 260A of the Income-tax Act, 1961 (for brevity, "the Act"), challenging the order dated June 22, 2009, passed by the Income-tax Appellate…

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