2008 (2) TMI 305

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e court was delivered by D. A. MEHTA J. - This Reference raises following common question of law which has been referred by the Income-Tax Appellate Tribunal, Ahmedabad Bench "A" under Section 256(2) of the Income-Tax Act, 1961 ("the Act") at the instance of the Commissioner of Income-tax. "Whether the Appellate Tribunal is right in law and on facts in confirming the order made by the Commis....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....mself. However, the issue in all the three Appeals, before the Tribunal, relates to one point, namely, whether it was open to the Assessing Officer to invoke the provision of Section 154 of the Act and exclude interest on deferred payment towards purchase of machineries in view of Explanation-8 to Section 43(1) of the Act. 3. Heard Mr. M.R. Bhatt, learned Senior Standing Counsel for the applica....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ccept the contention of the assessee that the issue was debatable in nature and in light of two contrary views, in relation to the same provision, Section 154 of the Act was not applicable. 5. The assessee carried the matter in Appeal before the Commissioner (Appeals), who accepted the submissions of the assessee and held that rectification was not permissible under Section 154 of the Act consi....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....t of settled legal position. The Apex Court has consistently held that where in relation to interpretation of a provision there are conceivably two opinions rectification cannot be resorted to. In the circumstances, the Tribunal was justified in confirming the order made by the Commissioner (Appeals) rejecting the Application made by the Assessing Officer under Section 154 of the Act for excluding....