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2019 (7) TMI 693 - AT - Income TaxRectification u/s 154 - mistake committed in the original Order of the Ld.AO passed U/s. 143(3) - treatment in the statement of affairs of the assessee company by excluding the profit derived from the sale of old machinery while computing the MAT U/s. 115JB - HELD THAT:- From the facts of the case it is apparent that the various Higher Judiciaries have taken divergent view on the issue where certain Capital loss are directly entered in the balance sheet without routing it through P & L Account. Though the Companies Act, 1956 mandates any Profits and Loss to be routed through P & L Account, the issue with respect to computation of MAT in such circumstance as admitted by both the parties is not settled by the decision of the Hon’ble Apex Court. In this situation it cannot be said that there is an apparent mistake in the original order of the AO passed U/s. 143(3) of the Act which is required to be rectified. In this circumstance the AO has jurisdiction only to reopen the case of the assessee U/s. 147 & 148 and pass speaking order after hearing both sides. In the case of the assessee the AO has invoked the provisions of section 154 and passed Order without affording the assessee an opportunity of being heard which is erroneous. Therefore, the CIT (A) has also erred in confirming the order of the Ld. AO passed U/s. 154 of the Act. Hence, we hereby set-aside the order of the Ld. CIT (A) and further quash the order of the Ld. AO who had erroneously invoked the provisions of section 154 of the Act. Since we have decided the appeal of the assessee in its favour by setting aside the order of the Ld. CIT (A) and quashing the order of the Ld. AO, the Stay Application filed by the assessee does not survive.
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