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2014 (8) TMI 1 - HC - Income TaxRectification of order u/s 154 – Withdrawal of unabsorbed investment allowance to be set off – Held that:- The successive ITOs from 1983 onwards did not express any reservation about the admissibility of the investment allowance claim - the ITO, who dealt with the assessment of a subsequent year, can independently deal with the claim - it was competent for the respondent to deal with the investment allowance for the AY 1991-92 independently, and was not bound by the view expressed by his predecessors, in the preceding assessment years - If it were to be a case where no deduction whatever was permitted of the investment allowance, though claimed in the preceding assessment years, and the respondent addressed the question, the contention of the Department can certainly be accepted - the determination as to the admissibility has already taken place and substantial part of it was enforced by permitting deduction, any permission accorded to the respondent to undo whatever has been done earlier, would run contrary to the very letter and spirit of Section 154 of the Act, or for that matter, the facility created under Section 32A of the Act - The process of undoing any matter can be only through the known and prescribed procedure and not otherwise – the order is set aside – Decided in favour of Assessee.
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