TMI Blog1991 (12) TMI 29X X X X Extracts X X X X X X X X Extracts X X X X ..... t year under reference is 1978-79, the year of account being Samvat year 2033. The assessee had incurred expenditure of Rs. 27,894 for insurance and Rs. 2,14,086 for port fees, freight charges, etc., in the previous year relevant to the assessment year 1978-79. In the course of assessment for the assessment year 1978-79, the Income-tax Officer allowed the assessee's claim for weighted deduction in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t). The Tribunal held to the effect that the assessee was entitled to weighted deduction under section 35B(1)(b) of the Act, as claimed by it. It further held that since two views on the question were possible, it could not be said that the order passed by the Income-tax Officer was erroneous and prejudicial to the interests of the Revenue. Therefore, in the view of the Tribunal, the Commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by our decision in M. M. Khambhatwala v. CIT [1992] 198 ITR 140, Incometax Reference No. 289 of 1980, disposed of by our judgment delivered today (December 2, 1991). Following the said decision and for the reasons recorded therein, question No. 1 shall have to be answered in the negative and against the assessee. So far as the second question is concerned, as pointed out above, the Tribunal t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er section 154 of the Act. It was only in the context of section 154 of the Act that the Supreme Court has in T. S. Balaram, ITO v. Volkart Brothers [1971] 82 ITR 50, observed that, when the issue is debatable, the power of rectification cannot be exercised. This decision of the Supreme Court has no application whatsoever so far as powers under section 263 are concerned. Therefore, with respect, t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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