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2014 (12) TMI 636 - HC - Income TaxValidity of rectification order – Doctrine of merger of orders - Whether the Tribunal was right in holding that the AO can pass a rectification order modifying the original assessment order carried into appeal and having already merged with the order of the CIT(A) while giving effect to the order passed by CIT(A) – Held that:- Assessee rightly contended that the Tribunal has gravely erred in confirming the action of revenue by holding that if a mistake apparent on record has occurred while giving effect to the order of CIT(A) then the AO is competent to rectify the order giving effect to the order of CIT(A) – after considering the decision in TS Balaram, Income-Tax Officer, Company Circle IV, Bombay Versus Volkart Brothers And Others [1971 (8) TMI 3 - SUPREME Court] it has to be held that the Tribunal and the CIT(A) have committed an error in upholding the rectification made by the AO - A decision on a debatable point of law is not a mistake apparent on the record - after the implementation of order passed by CIT(A), it was not appropriate on the part of AO to review the earlier order under the guise of rectification and in arriving at new facts and new order could not be passed unless order of CIT(A) was challenged or modified – thus, the order of the Tribunal and the rectification order passed by the AO is set aside – Decided in favour of assessee.
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