Case Law Details
Allied Agencies Vs ITO (ITAT Delhi)
Hon’ble Apex Court in the case of TS Balaram Vs. Volkart Brothers 82 ITR 50 (SC) clearly held that a mistake apparent on the record must be an obvious and patent mistake and not something which has to be established by a long drawn process of reasoning on points where there may conceivably be two opinions cannot be said to be an error apparent on the face of the record. A decision on a debatable point of law is not a mistake apparent from the record.
Coming to the instant case it is not in dispute that the AO has passed the order u/s 154 of the Act on a debatable issue, which cannot be construed rectification of any mistake apparent from the record and by virtue of provisions of section 154 of the Act, the AO is not empowered to do so, hence respectfully following the aforesaid dictum of the Hon’ble Apex Court, we are inclined to quash the order passed by the ld. AO u/s 154 of the Act itself.
FULL TEXT OF THE ORDER OF ITAT DELHI
1. The Assessee has preferred the instant appeal against the order dated 28.09.2018, impugned herein, passed by the Ld. Commissioner of Income-tax (Appeals)-10, New Delhi (in short „ Commissioner) u/s 250(6) of the Income-tax Act, 1961 (in short “the Act”), for the assessment year 2013-14, whereby the order passed by the AO u/s 154 of the Act was upheld.
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