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2022 (9) TMI 1327 - HC - Income TaxRectification of mistake u/s 154 - Income deemed to accrue or arise in India - substantial questions of law - Whether the subject income could be taken to have accrued in India only for the reason that it was shown in the balance sheet of the assessee? - HELD THAT:- Hon’ble Supreme Court in Ishwar Dass Jain Vs. Sohan Lal [1999 (11) TMI 863 - SUPREME COURT] under Section 100 CPC, after the 1976 Amendment, it is essential for the High Court to formulate a substantial question of law and it is not permissible to reverse the judgement of the First Appellate Court without doing so - there are two situations in which interference with the findings of fact is permissible. The first one is when material or relevant evidence is not considered which, if considered, would have led to an opposite conclusion. The second situation in which interference with findings of fact is permissible is where a finding has been arrived at by the Appellate Court by placing reliance on inadmissible evidence which is it was omitted, an opposite conclusion was possible. In either of the above situations, a substantial question of law can arise. Applying the ratio laid down in the above decision we have no hesitation to hold that substantial questions of law arise for consideration in this case, more particularly when the orders impugned suffer from utter perversity. As pointed out earlier on the date when the Miscellaneous Application was heard and decided by the learned Tribunal, there This issue has been decided by the Hon’ble Supreme Court in the case of ACIT vs. Sourashtra Kutch Stock Exchange [2008 (9) TMI 11 - SUPREME COURT] wherein the Hon’ble Supreme Court has held that an application for rectification was maintainable in such factual situation. The order of rejection of the application under Section 154 issued by the Centralised Processing Centre (CPC), Bangalore are quashed. Consequently, the order passed by the Assessing Officer computed the tax liability as per the intimation under Section 143 (1) and the assessment stands restored to the file of the Assessing Officer who shall review the assessment in terms of the observation made in the preceding paragraphs and also the law on the subject including the circular issued by the CBDT and grant the relief to the assessee by excluding the foreign income received by the assessee excluding the foreign income under Section 10(6)(viii) of the Act and such order shall be passed by the Assessing Officer within six weeks from the date of receipt of the server copy of this order.
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