2007 (7) TMI 235

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....d by K. Raviraja Pandian, J. - The Revenue has filed this appeal by formulating the following Substantial Questions of Law. "(i) Whether, in the facts and in the circumstances of the case, the rectification of assessment by deducting the amount eligible for deduction under Section 80HHC from the profits, and not from 30% of the book profit was not erroneous as not being on a debatable issue ....

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....he Assessing Officer issued notice under Section 154 of the Act for rectification and an order was passed by him under Section 154 of the Act after hearing the assessee who contended that there is no jurisdiction to revise the assessment under section 154 of the Act as there was no mistake apparent on the face of the record.  Aggrieved by the order of the Assessing Officer, the assessee filed....

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....inions. A decision on a debatable point of law is not a mistake apparent from the record, which is not amenable for rectification under Section 154 of the Income Tax Act.  A similar view is also taken by the Supreme Court in the case of CIT VS. HERO CYCLES PVT. LTD., reported in [1977] 228 ITR 463. 4. Mr. Nareshkumar, learned counsel appearing for the revenue submitted that the mistake is ....

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.... sought to be done in order to have an advantage in favour of the revenue. In any event it was contended that the issue was one of debatable issue. We are also of the view that the issue in controversy is a debatable issue. 7. It is well recognised law that any erroneous assessment cannot be the subject matter for rectification under Section 154 of the Income-tax Act. The erroneous order of ass....