INCOME TAX ACT, 1961

Section 154

Rectification under section 154 - Mistake apparent from record, whether rightly considered by AO in remand proceedings - Issue as regards deduction under section 80HH -

Assessee contended that issue with regard to deduction under section 80HH was specifically decided by CIT(A), therefore, AO was not justified in passing order under section 154 for rectifying mistake alleging that deduction under section 80HH was not properly worked out on certain items. Held: CIT(A) allowed appeal holding that deduction under section 80HH should have been allowed @ 20% of the profit for year without considering actual amount allowable. To re-compute deduction in respect of assessee's units @ 20% of profit ultimately determined for relevant year, matter was remitted back to AO. While re-computing deduction, AO considered profit earned from non-industrial activities and also did not deduct unabsorbed brought forward losses. It was to correct mistake apparent from record, section 154 was invoked. Suffice it to say that issue dealt with by CIT(A) was not subject-matter of proceedings under section 154, rather 20% of profit earned from industrial activities was considered and deduction was allowed.

REFERRED :

FAVOUR : Against the assessee

A.Y. : 1983-84

INCOME TAX ACT, 1961

Section 80HH

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