Law:

Section:

Section 154 of the Income-tax Act, 1961 - Rectification of mistakes - Apparent from records - Assessments year 1975-76 - Whether since order of priority in which different items like carried forward business losses of earlier years, unabsorbed - In original assessment, while granting deduction under section 80P, Assessing Officer allowed deduction under section 80J, development rebate and then after granting deduction under section 80P, he deducted amount of carried forward loss of assessment year 1973-74 and set off same to work out total income at Rs. Nil - Subsequently, Assessing Officer sought to rectify his order on grand that deduction was not according to priorities in which said items were deductible development rebate of earlier years etc. were deductible is not free from doubt, same could not be rectified under section 154 - Held, yes FACTS In the assessment order, while granting deduction under section 80P, the Assessing Officer allowed deduction under section 80J, development rebate and then after granting deduction under section 80P, he deducted the amount of carried forward loss of the assessment year 1973-74 and set of the same to work out the total income at Rs. nil. Subsequently, placing reliance on the Supreme Court decision in the case of Cambay Electric Supply Industrial Co. Ltd. v. CIT [1978]113 ITR 84 , the Assessing Officer concluded that assessment order was required to be rectified on ground that there was a mistake in the original assessment order. The mistake, according to him, was that deduction of carried forward loss, current development rebate and deduction under section 80J for the relevant year were not according to the priorities in which the said items were deductible. In the rectification order, the Assessing Officer granted deduction of current depreciation, followed by unabsorbed business loss, followed by unabsorbed depreciation and, thereafter, unabsorbed development rebate thereby withdrawing the relief under section 80P which was granted in the original assessment. On appeal, the Commissioner (Appeals) held that the matter was of debatable nature and could not be rectified under section 154. The Tribunal confirmed the…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492