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2018 (12) TMI 108 - AT - Income TaxRectification of mistake u/s 154 - allowance of reduced rate of depreciation - a debatable issue to invoke section 154 - AO allowed 15% of depreciation on trucks owned by the assessee as against 30% claimed by the assessee - Held that:- In this case, there was no record attached to the return of income to show that the claim of higher depreciation on trucks is to be allowed at 30% claimed by the assessee instead of 15%. The profit and loss accounts or other documents attached to the return of income does not show that the assessee has used the trucks for giving it on hire. This fact is also confirmed by the Ld. AR at the time of hearing by stating that the assessee has not shown hire charges in its books of account. Hence, it is apparent mistake committed by AO while framing the assessment order u/s. 143(3) of the Act dated 28/03/2004 and allowed depreciation at 30% as claimed by the assessee instead of deductible depreciation at 15% - the apparent error has arisen from the records of the case and it was not discovered from other sources. Hence, the error discovered as a result of perusal of the records would constitute apparent error which conferred jurisdiction on the concerned Assessing Officer to rectify the earlier order. It follows from this that the evidence which was considered by the Assessing Officer to rectify the error is not extraneous to the record but it is intimately connected with the records. Hence, exercising jurisdiction u/s. 154 of the Act by the Assessing Officer is justified - no infirmity in the order of the Assessing Officer to allow depreciation on trucks at 15% instead of 30% claimed by the assessee - Decided against assessee.
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