2005 (5) TMI 19

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.... Whether the Income-tax Appellate Tribunal was correct in law in setting aside the order passed by the Assessing Officer under section 154 of the Income-tax Act, 1961? (B) Whether the Income-tax Appellate Tribunal was correct in law in holding that the allowability of claim of payments towards provident fund (PF), family pension (FP), Employees State insurance (ESI) and administrative charges are debatable issues and cannot be termed as mistakes apparent on record?" The assessee had filed his return for the assessment year 1992-93 and the assessment was completed vide order dated January 20, 1994, under section 143(3) of the Act at an income of Rs. 19,95,900. The Assessing Officer issued a notice under section 154 of the Act stating why t....

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.... the relevant time. The Appellate Tribunal in this regard held as under: "Having considered the rival submissions and from a careful perusal of record, I find force in the contention of the assessee that under section 154 of the Income-tax Act, the Revenue authorities can make only those rectifications which are error apparent from the record. They cannot adjudicate the issues which are debatable ones and a mistake which is not apparent cannot be rectified. In support of this proposition, we rely upon the following judgments: Nirmal Udyog v. CIT [1998] 232 ITR 493 (MP); M.V.S. Sastry v. CIT [1998] 232 ITR 651 (Mad); CIT v. Eurasia Publishing House P. Ltd. [1998] 232 ITR 381 (Delhi); CIT v. Keshri Metal Pvt. ltd. [1999] 237 ITR 165 (SC)....