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2017 (12) TMI 1283 - AT - Income TaxRejection of rectification petition u/s 154 on MAT applicability - provisions of sec. 115JB(6) is applicable to the assessee, since its unit is located in Special Economic Zone - whether admitting the liability under MAT does not constitute mistake apparent from record - Held that:- We have noticed that the Ld CIT(A) has taken the view that the issue of deduction u/s 10B is debatable in nature and hence the same falls outside the scope of sec. 154 of the Act. We have earlier noticed that the claim of the assessee related to sec. 115JB(6) of the Act and the ld CIT(A) has misdirected himself in this regard by presuming that the claim was u/s 10B. We have also noticed that the deduction u/s 10B of the Act is no longer available while computing book profit u/s 115JB of the Act. The assessing officer has taken the support of decision rendered in the case of Goetz (India) Ltd.[2006 (3) TMI 75 - SUPREME Court] We notice that the Ld A.R has rightly pointed out that the AO was not correct in referring to that decision in the facts and circumstances of the case. Even otherwise, it is a mistake very much glaring and obvious and hence requires rectification. It is also settled proposition that income tax cannot be collected without the authority of law. Thus we are of the view that there is merit in the rectification petition filed by the assessee. We notice that there is merit in the claim for deduction u/s 115JB(6) of the Act and the same needs to be allowed as per the requirement of the Act while computing book profit u/s 115JB of the Act. Accordingly we set aside the order passed by Ld CIT(A) and direct the AO to allow the claim made in the rectification petition filed by the assessee.
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