Section 154 rectification cannot apply the amended section 115BBE rate to AY 2017-18 where the issue is debatable.

Section 154 rectification cannot be used to enhance tax by applying the amended section 115BBE rate to an addition under section 69A for Assessment Year 2017-18, because the applicability of the higher rate is a debatable issue requiring statutory interpretation. The analysis notes that the increase from 30% to 60% operates prospectively from 01.04.2017 and does not extend to earlier transactions or to AY 2017-18. As section 154 is limited to mistakes apparent from the record, a contested question of law falls outside its scope. The rectification was therefore not sustainable, and quashing of the rectification was upheld.

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Issues: Whether the rectification order under section 154 of the Income-tax Act, 1961 could validly enhance tax on an addition under section 69A by applying the amended rate under section 115BBE for Assessment Year 2017-18.

Analysis: The rectification was founded on application of the amended rate under section 115BBE to an assessment completed under sections 147 and 144B on an addition under section 69A. The applicable rate under section 115BBE was treated as a debatable question because judicial views had settled that the enhancement from 30% to 60% operates prospectively from 01.04.2017 and not for earlier transactions or for Assessment Year 2017-18. Since section 154 permits correction only of a mistake apparent from the record, an issue requiring interpretation and resolution of competing views cannot be brought within its scope.

Conclusion: The rectification order could not be sustained under section 154, and the enhanced rate under section 115BBE was not applicable to Assessment Year 2017-18. The order quashing the rectification was upheld.

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