1979 (6) TMI 60

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....78 on his file, by which, he confirmed the order passed by the ITO, B-Ward, Ernakulam, on 20th June, 1977 under s. 154 of the IT Act, 1961, determining the taxable income as Rs. 1,94,535 as against Rs. 1,81,723 determined in the original assessment made on 26th Dec., 1875 for the asst. yr.1979-71, the relevant previous year ending 31st Dec., 1969. 2. The assessee is a firm carrying on the busin....

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....e allowed depreciation in respect of the aforesaid addition in a sum of Rs. 17,083, that is to say, at 10 per cent of the cost. Thus, by his order dt. 26th Dec., 1975, he determined the taxable income as Rs. 1,81,723. Subsequently, there was an audit objection that excess depreciation had been allowed in respect of the said addition viz., Blue Bay Building and that depreciation should have been al....

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....st Rs. 17,083 allowed in the original assessment. 3. Aggrieved by such order, the assessee preferred appeal to the AAC contending that there was no apparent mistake, that the ITO had considered the matter and granted depreciation at 10 per cent and hence resort to s.154 was not proper. The AAC did not agree. He noticed that the ITO had mentioned the rate at which depreciation had to be allowed ....

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....le one and hence the resort to s.154 was not proper. The assessee's authorised representative pointed out that the ITO has allowed depreciation at 10 per cent again for the asst. yr. 1971-72 in respect of the above building. 5. The departmental representative contended that an obvious mistake had been committed by the ITO in mentioning the amount of depreciation allowable as Rs.17,083 when he a....