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2022 (10) TMI 340 - AT - Income TaxRectification u/s 154 - enhancement of income for the purpose of section 115JC - whether the CIT(A) is right in holding that it was not apparent from assessment order that the AO intended to enhance the adjusted total income of the assessee for the purpose of section 115JC and that based on the material available on record it cannot be said that there was a mistake apparent on record warranting rectification u/s 154? - HELD THAT:- It is a settled decision position that the scope of rectification is limited to correcting error of facts or error of law on the basis of material available on record. The Hon'ble Supreme Court in the case of Appollo Tyres [2002 (5) TMI 5 - SUPREME COURT] has laid down the principle that the AO does not have the jurisdiction to go beyond the net profit shown in the Profit & Loss Account except to the extent provided in Explanation to Section 115JB. We notice that in the case of PCIT vs. Mphasis Software and Services (India) Pvt Ltd [2022 (1) TMI 790 - KARNATAKA HIGH COURT] which considered in the case of J.J. Glastronics P. Ltd [2022 (4) TMI 1187 - KARNATAKA HIGH COURT] held that invoking section 154 would be untenable when the matter requires adjudication upon the issue which is debatable issue. In view of these discussions and considering the decisions of the jurisdictional High Court we hold that the AO is not correct in enhancing the book profits u/s.115JC by passing an order under Section 154 of the Act. We therefore see no reason to interfere with the order of the CIT(A) for both the assessment years. - Decided in favour of assessee.
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