TMI Blog2007 (1) TMI 151X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee could set off carry forward loss only to the extent of business income and that only the carried forward depreciation loss could be adjusted against the short-term capital gains. On notice, the assessee contended that the losses relating to the earlier years were determined and allowed to be carried forward for setting off against the taxable income and, as such, the assessment was rightly done. The Assessing Officer rejected the contention of the assessee and rectified the assessment. The assessee preferred an appeal before the Commissioner of Income-tax (Appeals) and submitted before the appellate authority that the proceedings under section 154 were not maintainable, since the issue sought to be touched under section 154 was an ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 154 were not available for purposes of correcting any error apparent. In any event, the decision on the question of set off came much later to the proceedings taken under section 154 and hence there was total lack of jurisdiction under section 154. It is further submitted that considering the scope of section 154 and the failure to exercise jurisdiction under any other provision, any reference, at this stage to any other provisions of the Act to draw support would be totally unjustified, since the contemplation was never to bring it under any other section, other than section 154. In the circumstances, it is submitted that the order of the Tribunal should be confirmed. It is an admitted case, that on the date of proceedings were tak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ile considering the disallowance under section 43B on the sales tax collected and shown as outstanding liability, held that this was a case wherein it could not be said that only one view was possible on the facts, hence, it could not be said that it was a mistake apparent from the records, which called for the exercise of the power of rectification under section 154 of the Act. This court, in the recent decision reported in [2006] 283 ITR 200 (CIT v. Seshasayee Paper and Boards Ltd.), to which one of us is a party, held that the question of relief under section 80HHC of the Act as regards the losses to be deducted from the profit available was a debatable issue which did not fall within the purview of prima facie adjustment under section ..... X X X X Extracts X X X X X X X X Extracts X X X X
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