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2013 (2) TMI 327 - HC - Income TaxRectification u/s 154 - Revenue contested that CIT(A) had directed to include only net commission receipts while arriving at deduction under Section 80HHC however, while excluding commission receipts set-off commission payment was wrongly given - whether rectification cannot be done when there are two possible interpretations ? - Held that:- Action of AO to re-open the issue on the ground of rectification, is not coming within the purview of Section 154 which clearly states that rectification power is available only if there is a mistake apparent from the record and the said power cannot be invoked either to nullify the earlier order, which became final or on the basis of change of opinion. AO having challenged the order of the CIT(Appeals) before the ITAT and the same having been dismissed and having allowed the said order to become final, he is also bound by the said order passed. As decided T.S.Balaram, Income-tax Officer v. Volkart Brothers [1971 (8) TMI 3 - SUPREME COURT] a mistake apparent on the record must be an obvious and patent mistake and not something which can be established by a long drawn process of reasoning on points on which there may conceivably be two opinions. Also see Seshasayee Paper & Boards Ltd. v. Inspecting Assistant Commissioner of Income Tax (1985 (3) TMI 37 - MADRAS HIGH COURT) & Assistant Commissioner of Income-Tax v. Saurashtra Kutch Stock Exchange Ltd. [2008 (9) TMI 11 - SUPREME COURT] Thus in the light of the above decisions of the Supreme Court and this Court, and having regard to the fact that the Assessing Officer has already passed re-assessment order as per the directions of the CIT(Appeals), he was not justified in initiating further proceedings for rectification to impose his own view under the guise of rectification under Section 154 and as such the questions of law raised are answered in favour of the Assessee and against the Revenue.
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