1987 (6) TMI 85

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..... IT Act, 1961 were not exigible and thereby cancelling the said rectification orders. 3. The relevant facts briefly stated are that the assessee is a limited Company carrying on business of running a cold storage. For the asst. yrs. 1978-79, 1979-80 and 1980-81 the ITO allowed investment allowance under s. 32A and relief under s. 80HH to the assessee company. On 15th Nov., 1985, the ITO passed separate but similar order under s. 154. He was of the view that investment allowance and relief under s. 80HH were wrongly allowed for the assessment year under consideration though the assessee was not legally entitled to such relief as it has been decided by the Hon'ble High Court in the case of CIT vs. Radha Nagar Cold Storage (P) Ltd. (1980) 18 .....

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..... s contended that the action of the ITO in allowing investment allowance under s. 32A and relief under s. 80HH in the original assessments was clearly a mistake of law apparent from the record, and, therefore, the ITO was justified in rectifying the assessment orders under s. 154. It was further contended that the CIT(A) was not justified in cancelling the rectification orders passed by the ITO under s. 154. 6. Learned authorised representative for the assessee has, on the other hand, fully supported the orders of the CIT(A). It was submitted that the issue involved was a debatable one and that there was no mistake apparent from the record in the original assessment framed by the ITO and therefore, he had no jurisdiction to rectify the ass .....

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..... A and relief under s. 80HH was not at all involved in that case. No where in that case it was held that a cold storage does not manufacture or produce any article or thing. The ITO was, therefore, not justified in passing the rectification order on the ground that the issue is not covered by the aforesaid decision of the Calcutta High Court. 8. However, the crux of the matter is whether there was a mistake in the assessment orders which was apparent from the record and whether the ITO was justified in resorting to s. 152 for withdrawing reliefs allowed to the assessee company in the assessment orders under s. 32A and 80HH. The issue whether the assessee company running a cold storage is an industrial undertaking manufacturing or producing .....

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