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2017 (6) TMI 1262 - AT - Income TaxRectification of mistake - Invocation of the provisions of section 154 - computation of book profit under section 115JA - Held that:- Book profit of the assessee-company under section 115JA was not computed by the Assessing Officer in the order dated 28.12.2007 passed under section 143(3)/263 and by treating such non-computation as the mistake apparent from record, the same was rectified by the Assessing Officer under section 154 by computing the book profit of the assessee under section 115JA. As rightly contended by the assessee in this regard, the issue of book profit under section 115JA involves charging as well as computation and these two parts being inseparable, they cannot be seen in isolation. Even if one of these two parts is debatable, the entire issue relating to book profit under section 115JA becomes debatable. The computation of such book profit in the facts and circumstances of the case of the assessee-company, which is engaged in the business of manufacturing of tea was a debatable issue as rightly contended by the assessee keeping in view the applicability of Rule 8 of the Income Tax Rules, 1962 as well as the involvement of slump sale and this position is clearly evident from the fact that the book profit of the assessee-company at three different stages was worked out by the Assessing Officer at three different figures. The computation part of book profit under section 115JA in so far as the assessee’s case for the year under consideration is concerned thus was highly debatable issue, rectification on which was beyond the scope of section 154 - Decided against revenue
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