TMI Blog1997 (2) TMI 16X X X X Extracts X X X X X X X X Extracts X X X X ..... depreciation at 15 per cent. on the plant and machinery which do not come into contact with corrosive chemicals in a sugar factory is not a mistake apparent from records and that the issue being a debatable one cannot be rectified under section 154 ?" The assessee is a company engaged in the manufacture of sugar and allied products. In the original assessment for the assessment year 1983-84, the Assessing Officer granted depreciation on the machinery which is put into use in the sugar factory, at a higher rate of 15 per cent., while those machinery which do not come into contact with corrosive chemicals were eligible for depreciation at the rate of 10 per cent. only. The Assessing Officer initiated proceedings under section 154 of the Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... artment filed a reference application under section 256(1) of the Act, requiring the Tribunal to state a case and refer the question of law set out in paragraph 1 above. The Appellate Tribunal rejected the said application on the ground that the question raised is not a referable question of law. Hence, the present tax case petition. Mr. C. V. Rajan, learned counsel appearing for the Department, strenuously argued that the question whether a particular machinery is entitled to depreciation at 15 per cent. or 10 per cent. can be regarded as an apparent mistake and it is open to the Income-tax Officer to rectify the mistake. According to him, if a particular machinery falls under the particular item in the depreciation Schedule, the grant o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... osive effect on the machinery is a debatable issue. The Appellate Tribunal has found that the issue involved is a controversial issue and once it is found that the issue is a controversial one, it is not open to the Income-tax Officer to invoke the provisions of section 154 of the Act for rectification. It is well settled that for rectification of mistake under section 154 of the Act there must be a mistake apparent from the record, and where the question is a debatable issue, it cannot be regarded as a mistake apparent from the record. As a matter of fact, in T. C. Nos. 688 and 689 of 1984 by order dated June 17, 1996 CIT v. E. I. D. Parry Ltd. [1997] 227 ITR 373, this court has remitted the matter to the Appellate Tribunal to consider the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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