TMI Blog2013 (12) TMI 1733X X X X Extracts X X X X X X X X Extracts X X X X ..... issue in this appeal of revenue is against the order of CIT(A) cancelling the rectification order passed by AO u/s. 154 of the Act. For this, revenue has raised following two grounds: 1. That the Ld. CIT(A) has erred in law as well as on facts in cancelling the rectification order passed by the AO u/s. 154 as the assessing officer has followed the direction of CIT(A) in calculating deduction u/s. 80HHC by rectifying the earlier order in which a mistake apparent from the record was committed while giving appeal effect to the said order. 2. That the Ld. CIT(A) has erred in law as well as on facts, as rectifying the order to follow the direction of Ld. CIT(A) falls within the definition of mistake apparent from the record and could n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act and according to him, there is a mistake in computation of deduction u/s. 80HHC of the Act. The assessee replied vide petition dated 20.03.2009 stating that there is no requirement of any rectification u/s. 154 of the Act as the deduction u/s. 80HHC of the Act has rightly been allowed by the AO. The AO while giving appeal effect to the order of CIT(A) allowed deduction u/s. 80HHC of the Act at Rs.5,87,28,125/- as against order withdrew deduction u/s. 80HHC of the Act at Rs.5,52,48,070/-. Aggrieved, assessee preferred appeal before CIT(A), who in his appellate order allowed the claim of the assessee by observing as under: I have gone through the submission of the appellant and also the order of the AO. The AO on the plea that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns and relying on the Supreme Courts decision and the above referred Madras High Court decision. l hold the order of rectification passed by the A.O. u/s 154 is against the law and accordingly is cancelled. These grounds of appeal are allowed. and also on merits as under: These grounds are disposed off on merits because of academic interest. The AO in his rectification order c nsidered the Other Incomes aggregating to Rs. 1,91,10,721 along with amounts of sales for turnover. The aforesaid Other Incomes comprised of unclaimed balances written off, Bad Debts Recovered, Interest received and Miscellaneous Other Incomes. The Ld. A/R was asked to produce the details of Miscellaneous Incomes and the same was examined. Taking into conside ..... X X X X Extracts X X X X X X X X Extracts X X X X
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