Tribunal directs AO to allow deduction under 115JB(6), emphasizing duty to inform about deductions, rejecting estoppel.

The Tribunal allowed the assessee's appeal, directing the AO to allow the claim u/s 115JB(6) for deduction while computing book profit, emphasizing the assessing officer's duty to inform about available deductions and rejecting the estoppel argument. The decision focused on rectifying the mistake in computing book profit u/s 115JB, ensuring the correct application of tax laws.

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Issues:
Challenge to rejection of rectification petition u/s 154 of the Act by Ld CIT(A) for AY 2008-09.

Detailed Analysis:

1. Facts and Background:
The assessee appealed against the order of Ld CIT(A) confirming the rejection of the rectification petition filed u/s 154 of the Act for AY 2008-09. The assessee, engaged in providing Revenue Cycle Management services to the healthcare industry, filed a revised return of income post-merger, declaring total income at NIL after claiming a deduction of Rs. 329.65 lakhs u/s 10B of the Act. The AO computed the book profit u/s 115JB at Rs. 401.32 lakhs, not allowing any deduction.

2. AO's Rejection and Ld CIT(A)'s Decision:
The AO rejected the rectification petition, stating that the assessee admitting liability under MAT did not constitute a mistake apparent from the record. Ld CIT(A) upheld the rejection, citing that the claim for exemption u/s 10B was not available while computing book profit u/s 115JB, and the matter was still pending before appellate authorities.

3. Arguments and Submissions:
The assessee contended that it sought deduction u/s 115JB(6) and not u/s 10B, emphasizing the omission of MAT exemption for sec. 10B units from April 1, 2008. The assessee accepted liability under MAT inadvertently, citing Circular No. 14 (XL-35) of 1955 requiring the AO to inform about available reliefs. The assessee argued against estoppel, citing legal precedents.

4. Tribunal's Decision:
The Tribunal noted that the assessee's rectification petition was for deduction u/s 115JB(6) and not u/s 10B. It emphasized that there is no estoppel against the law, and the assessing officer failed to inform the assessee about the available deduction. The Tribunal found merit in the rectification petition, directing the AO to allow the claim u/s 115JB(6) while computing book profit.

5. Conclusion:
The Tribunal allowed the assessee's appeal, highlighting the error in rejecting the rectification petition and emphasizing the need to rectify the mistake in computing book profit u/s 115JB. The decision was based on legal principles, precedents, and the duty of the assessing officer to inform about available deductions, ultimately ensuring the correct application of tax laws.

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