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2014 (8) TMI 1227 - HC - Income TaxRectification of mistake u/s 154 - mistake was occurred in calculation of deduction u/s 80HHC of the Income Tax Act, 1961 while giving appeal effect u/s 251 - HELD THAT:- We find that the Tribunal while dismissing the appeal preferred by the Revenue has held It is a fact that the AO while giving appeal effect to the order of CIT(A) u/s. 251 of the Act dated 30.05.2006 allowed deduction u/s. 80HHC of the Act and that deduction was allowed on the basis of Form No.10CCAC as well as in view of the direction of CIT(A). The AO has taken recourse to the rectification proceedings as he wanted to compute the turnover and computation of turnover is a highly debatable issue as the assessee in original allowance i.e. giving appeal effect to the order of CIT(A) has given his opinion, which he cannot rectify while acting u/s. 154 of the Act. Once this is a position, we are of the view that the CIT(A) has rightly quashed the rectification proceedings carried out by the AO u/s.154 The provision for rectification of mistake under Section 154 of the Income Tax Act, in our view, is “to rectify any mistake apparent from the record”, that is, the mistake should be palpable and as the Tribunal had held that in the instant case it is “a highly debatable issue”, we are of the view that no substantial question of law arises out of the order passed. The revenue was unable to demonstrate that the rectification of computation made arose out of a mistake apparent from the record. Therefore, the application and the appeal are dismissed.
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