https://www.taxtmi.com/caselaws?id=216998 In rectification proceedings under section 154 of the Income-tax Act, the Assessing Officer could grant carry forward and set-off of earlier losses and unabsorbed depreciation and also make the consequential recomputation of deduction under section 80HHC(3) on the adjusted business profits. Once the taxable income was being corrected through that adjustment, the Chapter VI-A deduction had to be recalculated on the same basis to arrive at the correct income. The Court treated the omission to adjust the deduction as leading to escapement of income and held that section 154 permitted such consequential correction. The rectification order was therefore valid, and recomputation of the deduction was permissible. en-us Wed, 19 Sep 2012 00:00:00 +0530 Thu, 27 Sep 2012 11:05:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=216998 In rectification proceedings under section 154 of the Income-tax Act, the Assessing Officer could grant carry forward and set-off of earlier losses and unabsorbed depreciation and also make the consequential recomputation of deduction under section 80HHC(3) on the adjusted business profits. Once the taxable income was being corrected through that adjustment, the Chapter VI-A deduction had to be recalculated on the same basis to arrive at the correct income. The Court treated the omission to adjust the deduction as leading to escapement of income and held that section 154 permitted such consequential correction. The rectification order was therefore valid, and recomputation of the deduction was permissible. Case-Laws Income Tax Wed, 19 Sep 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=216998