2002 (8) TMI 21 - HC - Income Tax

Mistake rectification - Whether, on the facts and circumstances of the case, the Tribunal was right in upholding the order of the learned Deputy Commissioner (Appeals) on the ground that the issue before him was debatable and hence could not be considered as a mistake apparent on the record rectifiable under section 154, despite the fact that when the Tribunal decided the appeal, the issue was no longer debatable as far as the State of Rajasthan was concerned, in view of the decision of the Rajasthan High Court in the case of CIT v. Shiv Raj Bhatia? - we answer the question in the negative, i.e., in favour of the Revenue and against the assessee.

Summary

The High Court of Rajasthan ruled that the Tribunal erred in upholding the Deputy Commissioner's decision on a debatable issue regarding deduction of expenditure from incentive bonus. The Tribunal should have followed the High Court's decision in a similar case. The Court ruled in favor of the Revenue and against the assessee.