TMI Blog2022 (5) TMI 1343X X X X Extracts X X X X X X X X Extracts X X X X ..... sible in the given factual matrix. On a broader reckoning, it is plain and simple that mere claim of prior period expenses in a relevant assessment year cannot be disallowed outright without examining the factual matrix. - in the case of Hero Cycle (supra) has inter alia observed in paragraph 3 of the judgment that Rectification under section 154 of the Act can only be made when glaring mistake of fact or law has been committed by the officer passing the order becomes apparent from the record. Rectification is not possible if the question is debatable. Moreover, the point which was not examined on facts or in law cannot be dealt as mistake apparent on the record. The dispute raised a mixed question of fact and law. Thus the action of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... per the captioned appeal, the assessee has challenged; (i) the adjustment towards prior period expenditure of Rs.3,81,716/- by way of rectification resulting in increase in the assessed income. (ii) increase in the assessed income by Rs.3,32,350/- on account of provision for leave encashment outstanding as on date of filing of return. 3. When the matter was called for hearing, the ld. counsel for the assessee submitted that none of the aforesaid adjustments are permissible under Section 154 of the Act. It was asserted that Section 154 operates to correct only mistake apparent from record and thus scope of rectification is very limited. 4. With the assistance of the ld. counsel for the assessee, we notice that the Assessing Offic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble. Moreover, the point which was not examined on facts or in law cannot be dealt as mistake apparent on the record. The dispute raised a mixed question of fact and law. 5. In the light of the legal position noted above, the action of the Assessing Officer is clearly without jurisdiction to invoke Section 154 of the Act with a view to engage in making adjustments on such debatable issues in an abstract manner. The action of the Assessing Officer is thus without sanction of law and requires to be reversed. 6. The second issue pertains to adjustment of Rs.3,32,350/- on account of provision for leave encashment under Section 154 of the Act. In this regard, it is the case of the assessee that at the time of passing of rectification orde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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