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[2008] 304 ITR 390 (MAD) HIGH COURT OF MADRAS Commissioner of Income-tax v. Y. K. Shoji Stone Indo (P.) Ltd. K. RAVIRAJA PANDIAN AND P. P. S. JANARTHANA RAJA, JJ. TAX CASE (APPEAL) NO. 1106 OF 2007 JULY 25, 2007 Section 154 of the Income-tax Act, 1961 - Rectification of mistake - Apparent from records A debatable point cannot be a reason for rectification under section 154. [A.Y. 1999-2000]. Any erroneous assessment cannot be the subject-matter for rectification under section 154. The erroneous order of assessment can be rectified only under procedure known to law by carrying the matter before the appropriate authority to rectify the erroneous order or revise it as per law. A debatable point cannot be a reason for rectification under section 154. Where the revenue had contended that the Assessing Officer has committed a mistake inasmuch as deduction under section 80HHC was deducted from 30 per cent. of the book profit instead of deducting the same from the whole profit and hence, it was a glaring mistake, which could be rectified under section 154. Held that it was the contention of the assessee that the procedure followed by the Assessing Officer in granting the deduction under section 80HHC from out of the book profit was the correct procedure and the procedure now sought to be projected by the revenue was not correct and it was sought to be done in order to have an advantage in favour of the revenue. In any event it was contended that the issue was one of debatable issue. The issue in controversy was a debatable issue. Therefore, rectification of assessment order was not permissible. Naresh Kumar for the Appellant. JUDGMENT K. Raviraja Pandian, J.-The Revenue has filed this appeal by formulating the following substantial questions of law. "(i) Whether, on the facts and in the circumstances of the case, the rectification of assessment by deducting the amount eligible for deduction under section 80HHC from the profits, and not from 30 per cent. of the book profit was not erroneous as not being on a debatable issue ? (ii) Whether the adjustment to any deduction claimed by the assessee in total contravention to the provisions of statute would not amount to…

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