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2024 (3) TMI 829 - GUJARAT HIGH COURTAdjustment made u/s 115JB in Rectification order u/s 154 - Debatable issue - addition of surrendered income by the assessee was included in the book profit of the assessee as per Section 115JB - ITAT held non-inclusion of income surrendered u/s. 115 JB could not have been corrected in rectification proceedings u/s. 154 - HELD THAT:- The Hon’ble Delhi High Court in the case of RTCL. LTD. [2012 (4) TMI 287 - DELHI HIGH COURT] has held that the book profits as declared by the assessee was in conformity and as per the provisions of parts II and III of the Schedule VI of the Companies Act, 1956 and there was nothing on record to suggest that the book profits were contrary to such provisions or not in consonance with such provisions. In view of the conclusion arrived at by the Tribunal that such inclusion of the disclosure made by the assessee company would require long drawn reasoning and debate and therefore, when the issues and contentions being debatable on uncertainty, the Assessing Officer could not have invoked the power under Section 154 of the Act for rectification of the mistake apparent on record. The Tribunal, therefore, was right in observing that the action of the Assessing Officer as well as the CIT(A) under Section 154 of the Act was not warranted. Decided against revenue.
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