2009 (10) TMI 579

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....t off against the undisclosed income for the block assessment period April 1, 1985 to November 9, 1995 ?   2. Whether in the facts and circumstances of the case, the losses that are not permitted to be carried forward on account of delayed filing of return, can be treated as undisclosed and set off against undisclosed income under Chapter XIV-B of the Act ?   3. Whether in the facts and circumstances of the case, the Tribunal was right in holding that the wrong allowance of set off of losses cannot be rectified under section 154 ?"   2. The facts as culled out from the statement of facts recorded in the memorandum of grounds are as follows:   (i) The Assessing Officer by rectifying the proceedings under section 154 r....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ns of section 154 of the Income-tax Act, 1961?   5. It is well-settled that the provision of section 154 can be invoked only in order to rectify the inadvertent mistake, which is apparent on the face of the record and not in a debatable issue. The Commissioner of Income-tax (Appeals) as well as the Tribunal have followed the order passed by the Tribunal in Venkatesan's case (supra) wherein also the question as to whether section 154 can be invoked for correcting the mistake of the present nature has been considered and held in favour of the assessee.   6. From the order of the Tribunal, the first two questions of law do not arise for consideration. As far as the third question of law is concerned, it is relevant to point out the....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....cess of reasoning of issues on points on which there may be more than one reason. A decision on a debatable point of law certainly is not a mistake apparent from the record'.   8. An impression formed on the scope of the provisions could not be a mistake or an error apparent from the record so as to justify the exercise of jurisdiction under section 154. The invoking of the provisions of section 154 presupposes a mistake or an error which is patent or obvious and does not involve a long drawn process of reasoning on a point which is already a debatable issue. Considering the fact that the decision of this court was available much later to the proceedings under section 143(1)(a), we do not find any error in the order of the Tribunal to....