2016 (2) TMI 709

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....(hereinafter referred to as "the Act"), on 19.03.2001. 2. In the assessment order, the Assessing Officer took cognizance of the 'lease income return' and included the same as 'income from business', on a protective basis. However, while working out deduction under Section 80HHC of the Act, 90% of the gross lease income was omitted to be reduced from the business income to work out eligible business profits. To rectify this mistake, a notice under Section 154 of the Act was issued. 3. By an order, dated 27.06.2001, the Assessing Officer, revised the assessment order, dated 19.03.2001 and excluded 90% of the gross lease income, from the eligible profits of business, while determining the deduction under Section 80 HHC of....

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....tification of mistake: (1) With a view to rectifying any mistake apparent from the record an income- tax authority referred to, in section 1 16 may,- (a) amend any order passed by it under the provisions of this Act; (b) amend any intimation sent by it under sub- section (1) of section 143, or enhance or reduce the amount of refund granted by it under that sub- section.] (1A) Where any matter has been considered and decided in any proceeding by way of appeal or revision relating to an order referred to in sub- section (1), the authority passing such order may, notwithstanding anything contained in any law for the,, time being in force, amend the order under that sub- section in relation to any matter othe....

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....he Act deals with rectification of an error apparent on the face of the record and that when the mistake is not patent and self-evident, Section 154 of the Act cannot be invoked; it is pointed out that, the issue pertains to computation of deduction under Section 80HHC of the Act, by excluding 90% of the gross lease income from the business profits and when the issue to be resolved involves determination of complicated facts and law, there is no justification to invoke the provisions of Section 154 of the Act. 9.1. The learned counsel for the Revenue would submit that the assessee cannot challenge the validity of the order passed invoking Section 154 of the Act, as the issue was not raised before the Commissioner of Income Tax (Appeals) ....

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....t be invoked in a case of mere change of opinion. A rectifiable mistake was a mistake which was obvious and not something which had to be established by a long drawn process of reasoning or where two options were possible. A decision on a debatable point of law could not be treated as a 'mistake apparent from the record'." (ii) (2007) 295 ITR 525 (Raj) (Commissioner of Income Tax v. Ram Kishan Leela):- "...Held, dismissing the appeal, (i) that the original reassessment proceedings having already been restored to the file of the Assessing Officer, the second reassessment proceedings became infructuous as orders could be passed on the basis of the available material including information received while finalising the....