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Sec 154 cannot be resorted for applying sec 115JB of Income Tax Act,1961
Case Law Details
- Case Name
- ACIT Vs M/s Cardinal Drugs Pvt. Ltd. (ITAT Agra)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Related Assessment Year
- 2005- 06
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CA Prarthana Jalan
In the case of Cardinal Drugs Pvt Ltd.Hon’ble ITAT has observed that there was no scope for the A.O. to have resorted to the provision of Section 154 of the Act for the purpose of enhancing the income of the assessee.by stating as under:-
The A.O. on long drawn process of reasoning should not have passed the order under Section154 of the Act. The issue raised by the A.O. in proceeding under Section 154 of the Act is highly debatable which requires the issue to be reconsidered by the A.O.about applicability of the provision of Section 115JB of the Act which was notraise...
Author Info
‘mistake apparent from records’ is rectifiable u/s 154 of the IT Act.
Section 154 of the Income Tax Act,1961 has got limited scope to the A.O. as well as to the assessee to go for a rectification in the assessment order.If it within the limitation period notice U/s.148 should have been issued, where it is clear that the income has escaped the assessment.Hence revising the order u/s.154 amounts to review of it’s own order, which he is not empowered under the statute.