2011 (1) TMI 840

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....rder of the Tribunal dated 13.12.1996 in I.T.A. No.314/Chandi/1991 for the assessment year 1985-86 and is as under:-   "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in law in holding that provisions of section 154 are not applicable to rectify the mistake of law and that provisions of section 80VVA are not applicable?"   2. Assessment of the assessee for the assessment year 1985-86 was completed on 29.3.1988. Thereafter, the assessee sought rectification under Section 154 of the Act to claim depreciation. The application was allowed vide order dated 30.6.1988 and income was recomputed on that basis. Thereafter, the Assessing Officer noticed that while recomputing the....

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....n respect of assessment year 1984-85 to 87-88, notwithstanding the fact that the provisions of section 80-VVA had been introduced w.e.f. 01.04.1984. The contention of the assessee is clearly illconceived since if that were the interpretation and scope of section 80-VVA, the very existence of section 80-VVA is negated. In fact, the provisions of section 80-VVA were introduced only with a view to bring those companies within the tax brackets which were thenceforth avoiding the payment of taxes by reasons of claims under chapter VI-A. Therefore, restriction imposed by section 80-VVA were applicable even in respect of the deductions brought forward from earlier assessment years." Finding of the CIT(A):-   "The succeeding Assessing Of....

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....assed by the AO as well as the first appellate authority, it is clear that the DCIT, Spl. Range, Chandigarh had passed an order u/s 154 on 30.6.1988 in which the assessee company was given benefit of brought forward of investment allowance, depreciation etc. for earlier years. This benefit was allowed after due consideration by the Ld. DCIT, Spl. Range, Chandigarh and thereafter the case was transferred to the Asstt. Commissioner, Central Circle, Chandigarh, who passed an order u/s 154 on 21.3.1990 and applied the provisions of section 80VVA in respect of the brought forward investment allowance etc. by observing that "the provisions of section 80VVA were not applied at the time of giving benefit of brought forward investment allowance for ....