2012 (6) TMI 827 - AT - Income Tax

Summary

Issues involved: Rectification of order u/s 254 of the Income Tax Act regarding deduction under section 80HHC on the value of DEPB.

Summary:
The appellant filed three Misc. Applications u/s 254 of the Income Tax Act, 1961, arising from the Tribunal's order related to assessment years 2001-02, 2003-04, and 2004-05. The issue pertained to deduction u/s 80HHC on the value of DEPB. The Assessing Officer initially decided the issue based on judgments of the Mumbai High Court and Punjab & Haryana High Court, rejecting the appellant's contention. The CIT (A) upheld this decision, which was confirmed by the Tribunal. However, the subsequent reversal of the Mumbai High Court's judgment by the Supreme Court in the case of Topman Exports v. CIT constituted a mistake apparent from the record. The appellant sought rectification of the order to align with the Supreme Court's decision.

The Tribunal rectified its order, remanding the issue to the Assessing Officer to recompute the deduction u/s 80HHC in accordance with the law and the Supreme Court's judgment in the Topman Exports case. The Assessing Officer was directed to provide the appellant with an opportunity to be heard. Consequently, the common grounds raised by the appellant were allowed, and the Tribunal's order dated 21.11.2011 was rectified accordingly.

The Misc. Applications filed by the assessee were disposed of in light of the rectification made by the Tribunal.