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2017 (1) TMI 885 - AT - Income TaxScope of rectification of mistake - whether AO empowered to reduce the deduction claimed by the assessee u/s 80-IC @ 30% accepted u/s 143 invoking the provisions contained u/s 154 - Held that:- Undisputedly, the AO has passed order dated 29.03.2012 u/s 154 summarily without perusing and discussing the record to find out if the assessee is actually entitled for deduction u/s 80-IC @ 100% as claimed or 30% as held by the AO. It is settled principle of law that when there exists a debatable issue that two views are possible, it is not open to the authority u/s 154 of the Act to revise the opinion by invoking the provisions contained u/s 154 of the Act and only mistake apparent on record can be rectified. In the instant case, this is not a mistake apparent on record rather the issue was debatable and required to be decided on merit. So, we are of the considered view that the impugned issue decided by the AO u/s 154 is not rectification rather it amounts to reframing of the assessment without giving any reason. However, the revenue is at liberty to reopen the assessment in accordance with law. Even otherwise, the assessee has already been granted 100% deduction u/s 80-IC for AY 2010-11 vide order dated 15.07.2014 passed by CIT (A) which is not stated to have been challenged by the revenue. So, when the assessee has already been allowed 100% deduction u/s 80-IC till 10th year of its operation, the disallowance u/s 80-IC for the intervening year AY 2006-07 does not fit into the scheme of rule of consistency which the revenue is required to follow. - Decided in favour of assessee
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