TMI Blog2007 (7) TMI 235X X X X Extracts X X X X X X X X Extracts X X X X ..... K. Raviraja Pandian, J. - The Revenue has filed this appeal by formulating the following Substantial Questions of Law. "(i) Whether, in the facts and in the circumstances of the case, the rectification of assessment by deducting the amount eligible for deduction under Section 80HHC from the profits, and not from 30% of the book profit was not erroneous as not being on a debatable issue ? (ii) Whether the adjustment to any deduction claimed by the assessee in total contravention to the provisions of statute would not amount to rectification of a mistake apparent on record for the purpose of section 154? 2. The facts of the case culled out from the statement of facts filed by the Revenue goes as follows. 3. The assessee is a Pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd patent mistake and not something which can be established by a long drawn process of reasoning on points on which there may be conceivably two opinions. A decision on a debatable point of law is not a mistake apparent from the record, which is not amenable for rectification under Section 154 of the Income Tax Act. A similar view is also taken by the Supreme Court in the case of CIT VS. HERO CYCLES PVT. LTD., reported in [1977] 228 ITR 463. 4. Mr. Nareshkumar, learned counsel appearing for the revenue submitted that the mistake is glaring on the face of the order and it can be regarded as apparent on the face of the record. 5. We heard the argument of the learned counsel on either side and perused the materials on record. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rocess of reasoning on the point in issue on which there may be conceivably two opinions. A decision on a debatable point of law cannot be regarded as a mistake apparent on the face of the record amenable for rectification under Section 154 of the Income-tax Act. Useful reference can be had to the judgments of T. S. BALARAM, INCOME TAX OFFICER VS. VOLKART BROTHERS AND OTHERS reported in [1971] 82 ITR 50 and COMMISSIONER OF INCOME-TAX VS. HERO CYCLES PRIVATE LIMITED reported in [1997] 228 ITR 463. Hence, we do not find any question of law, much less, substantial question of law, for entertaining this appeal as the issue has already been covered by the decisions of the Supreme Court. Therefore, the Tax Case (appeal) is dismissed. - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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