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Section 154 of the Income-tax Act, 1961 - Rectification of mistakes - Apparent from records Rectification of intimation under section 143(1)(a ) to disallow alleged excess depreciation on basis of assessment of earlier year which was made under section 115J, was unsustainable, as issue involved was a debatable one [A.Y 1993-94] The assessing authority had originally accepted the return under section 143(1)(a) without any prima facie adjustment in the intimation and granted the depreciation as clamed by the assessee. Considering the apparent mistake on the question of granting excess depreciation, the assessing authority sought to rectify the intimation under section 143(1)(a) by taking a recourse to section 154.The view that as per section 115J(2), even where the tax had been paid on the basis of book profit, unabsorbed depreciation, investment allowance and past losses could be treated as fully availed of to the extent of statutory profit of the year. Hence, the written down value of the assets to be adopted for determining the depreciation would be after deduction of the depreciation calculated under the normal provisions of the Act in the earlier assessment year in which the total income was assessed under section 115J: Held that debatable issue does not fall within the purview of prima facie adjustment or for rectification. As such, considering the debatable nature of the claim at the time under section 143(1)(a) was invoked and the scope of rectification under section 154, the rectification taken in the proceedings embarked upon was totally unsustainable. JUDGMENT Mrs. Chitra Venkataraman, J.- The above appeal is by the Revenue, relating to the assessment year 1993-94. The two questions of law that arise for consideration in this appeal are as follows : "1. Whether, in the facts and circumstances of the case, the Tribunal was right in holding that where the assessment was under section 115J for the earlier year, the assessee is entitled to excess depreciation ? 2. Whether, in the facts and circumstances of the case, the Tribunal was right in holding that for aprima facie adjustment under section 143(1)(a), the Assessing Officer cannot look at the earlier…

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