1999 (11) TMI 116

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....nces of the case the learned Dy. CIT(A) has erred in holding that the AO was not justified while acting under s. 154 in giving a finding that benefit of carry forward of loss would not be made available to the assessee ignoring the fact that the return was not filed within the time stipulated under s. 139(1) of the Act." 2. The learned Departmental Representative submitted that the Dy. CIT(A) h....

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....r, moved an application under s. 154 on 13th July, 1990, requesting amendment of the order passed in the case of the assessee at an income of Rs. 1,384. The AO noted in his order that the original return filed by the assessee was not within the time allowed under s. 139(1) and, therefore, the assessee was not entitled to carry forward of the losses to be determined in consequence of the reduction ....

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....fore, held that the order passed by the AO under s. 154 is not valid and the AO was not justified in giving a finding that benefit of carry forward of loss would not be made available to the assessee. The learned counsel also relied upon judgment C.P. Sarathy Mudaliar vs. CIT 1978 CTR (AP) 354 : (1978) 114 ITR 687 (AP). He further pointed out that no notice as required under s. 154(3) was given to....

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.... the aforesaid amendment. In my view, the Dy. CIT(A) has rightly held that the point in issue is a debatable issue and, therefore, the same falls outside the purview of s. 154. The learned Dy. CIT(A) has given adequate and convincing reasons to show as to how the issue relating to carry forward/set off of share from loss in a firm is a debatable one. There cannot be two opinions on this point that....