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2012 (9) TMI 62 - AT - Income TaxScope of Section 154 – assessee seeking rectification of order u/s 154 of assessment order passed u/s 115WE(3) levying fringe benefit tax on ESOP scheme of the assessee company on ground that levy of fringe benefits tax on ESOP/sweat equity is provided only from the AY 2008-09 – dismissal of rectification plea by AO, confirmed by CIT(A) – AY 07-08 - Held that:- The AO has taken a conscious decision to bring the ESOP expenditure to fringe benefits tax while computing taxable fringe benefits while passing the assessment order u/s 115WE(3). Therefore, the AO rightly rejected the rectification petition filed by the assessee, since it is not a mistake apparent from record within the meaning of section 154 as the taxability or otherwise of an ESOP expenditure u/s 115WB(1)(a) is highly debatable issue and such issue cannot be adjudicated in the proceedings u/s 154 and it is beyond the scope of section 154. Therefore, we confirm the order of the CIT (Appeals) – Decided against assessee.
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