AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2003 (10) TMI 13
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....664 of 1994. While admitting these appeals, the following substantial question of law was framed in each appeal for consideration by this court: "Whether, on the facts and circumstances of the case, the mistake pointed out by the Assessing Officer for invoking jurisdiction under section 154 of the Income-tax Act can be considered as a mistake apparent from the record, which could confer jurisdiction to the Assessing Officer for initiating and making orders under section 154 of the Income-tax Act, 1961, for the purpose of recomputing allowable deduction under sections 80-I and 80HHC?" The above question relates to the rectification in the original assessment order in computing the deductions permissible under sections 80-I and 80HHC of Cha....
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....he assessee with regard to the mistakes pointed out by him are not tenable and the deductions allowed under section 80HHC as also the benefit of carried forward of unabsorbed deductions allowed under Chapter VI-A are not in accordance with the provisions of the Act and the mistakes being apparent from the record are liable to be rectified. On appeal, the Commissioner of Income-tax (Appeals) as well as the Income-tax Appellate Tribunal found this question to be a debatable one and held that the provisions of section 154 of the Act cannot be invoked for rectifying recomputation of deductions allowable under section 80HHC. It was also held that since investment allowance is a special rebate, the deductions under section 80HHC was directed to ....
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.... which is included in the gross total income of the assessee, then, notwithstanding anything contained in that section, for the purpose of computing the deduction under that section, the amount of income of that nature as computed in accordance with the provisions of this Act (before making any deduction under this Chapter) shall alone be deemed to be the amount of income of that nature which is derived or received by the assessee and which is included in his gross total income." Section 80B defines "gross total income". It reads as under: "80B. Definitions. - In this Chapter, - . . . (5) 'gross total income' means the total income computed in accordance with the provisions of this Act, before making any deduction under this Chapter. . .....
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.... carried on by the assessee. A combined reading of the aforesaid provisions leave no room of doubt in our mind that the total income of the business carried on by the assessee whether exclusively of export or with some other business is to be computed in accordance with the general provisions of the computation of profits and gains of the business or profession. Part D of Chapter IV deals with computation of income from profits and gains of business or profession. Section 28 defines what income is chargeable to income-tax under the head "Profits and gains of business or profession". Section 29 states that the income referred to in section 28 shall be computed in accordance with the provisions contained in sections 30 to 43D. Section 32A of....
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....stion to be a debatable one, merely because for different assessment years, the Assessing Officer or the appellate authority has taken a different view. To this extent, the order of the Tribunal deserves to be set aside. Before parting with the case, we may notice that in the memo of appeal, the respondent has sought to urge that a substantial question of law about disallowance of recomputation of total deduction in the light of section 80A(2), read with section 80VVA was also a mistake apparent on the face of the record inasmuch as section 80A(2), which read with section 80VVA(1) provides the maximum limit up to which deduction can be allowed was clearly breached because the Assessing Officer had allowed carry forward of unabsorbed deduct....