TMI Blog2019 (7) TMI 693X X X X Extracts X X X X X X X X Extracts X X X X ..... to computation of MAT in such circumstance as admitted by both the parties is not settled by the decision of the Hon ble Apex Court. In this situation it cannot be said that there is an apparent mistake in the original order of the AO passed U/s. 143(3) of the Act which is required to be rectified. In this circumstance the AO has jurisdiction only to reopen the case of the assessee U/s. 147 148 and pass speaking order after hearing both sides. In the case of the assessee the AO has invoked the provisions of section 154 and passed Order without affording the assessee an opportunity of being heard which is erroneous. Therefore, the CIT (A) has also erred in confirming the order of the Ld. AO passed U/s. 154 of the Act. Hence, we hereb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee-company filed its return of income for the A.Y. 2012-13 on 29/09/2012 declaring total loss of ₹ 3,31,84,689/-. Thereafter assessment U/s. 143(3) of the Act was completed on 25/2/2015. Subsequently, the Ld. AO passed order u/s 154 of the Act on 10/10/2017 rectifying the apparent mistake committed in the Original assessment Order passed U/s. 143(3) of the Act as he was of the view that the profit derived from sale of old machinery amounting to ₹ 91,78,920/- was erroneously entered in the balance sheet directly instead of routing it through P L Account. The Ld. AO further opined that such treatment in the statement of affairs of the assessee company by excluding the profit derived from the sale of old machine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ld. AO ought to have done by invoking the provisions of section 147 and 148 of the Act cannot be carried out by invoking the provisions of section 154 of the Act. Therefore, the order of the Ld. AO U/s. 154 of the Act is erroneous. Accordingly, the order of the Ld. CIT(A) confirming the order of the Ld. AO is devoid of merits. The Ld. DR on the other hand argued in support of the orders of the Ld. Revenue Authorities. 5. We have heard the rival submissions and carefully perused the materials on record. From the facts of the case it is apparent that the various Higher Judiciaries have taken divergent view on the issue where certain Capital loss are directly entered in the balance sheet without routing it through P L Account ..... X X X X Extracts X X X X X X X X Extracts X X X X
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