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2017 (10) TMI 1601 - ITAT DELHIRectification of application u/s 154 - AO has assumed jurisdiction u/s 154 for making the disallowance under section 14A of the Act to the book profits computed under section 115 JB - debatable issue - HELD THAT:- The question as to whether 14A disallowance can be made to the book profits or not is a debatable issue and it our considered opinion that the AO has got no jurisdiction to make such an addition while resorting to the provision of section 154 of the Act as the scope of said section is very limited. As relying on various diversifies decisions it is concluded that the issue is quite debatable and under such circumstances, in our view, it was beyond the powers of the AO, exercisable under section 154 to make an addition on a debatable issue as the original assessment in this case had been completed under section 143(3) of the Act. Merely because another view is possible cannot be a ground to rectify the order under section 154 of the Act as the same cannot be said to be a mistake apparent on record. ITAT Mumbai Bench has also taken a similar view in the case of Beekaylon Synthetics Pvt. Ltd v. ACIT [2015 (7) TMI 1401 - ITAT MUMBAI] which we respectfully follow and hold that the AO had no power to make a disallowance u/s 14A of the Act to the book profits computed u/s 115JB by resorting to section 154 proceedings. We, accordingly, quash the order passed by the AO u/s 154. - Decided in favour of assessee.
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