2014 (10) TMI 534 - HC - Income Tax

Rectification of order u/s 154 Scope of term mistake apparent from the record - Examination of claim of deduction u/s 80HHC, 80IB Business of manufacturing and trading of garments made up and cloth - Held that - Deduction u/s 80HHC of the Act was not allowed correctly as according to Section 80IA (9) of the Act, deduction allowable u/s 80IB of the Act was required to be reduced from the profit of business for computing deduction under Section 80HHC of the Act - Since the mistake was found to be apparent from record, notice u/s 154 of the Act was issued to the assessee and the order of rectification was passed, which was upheld by the CIT(A) and the Tribunal following the decision in Commissioner of Income Tax. Versus Smt. Aruna Luthra 2001 (8) TMI 84 - PUNJAB AND HARYANA High Court with regard to rectification of mistake apparent on record, assessee has not been able to show any illegality or perversity in the order of the Tribunal thus, no substantial question of law arises for consideration Decided against assessee.

Summary

Issues involved:
1. Delay in refiling the appeal.
2. Appeal under Section 260A of the Income Tax Act, 1961 against the order dated 22.11.2012.
3. Questions of law regarding rectification under Section 154 and deduction under Sections 80HHC and 80IB.

Analysis:
1. The delay in refiling the appeal was condoned by the High Court.
2. The appeal was filed against the order dated 22.11.2012 by the Income Tax Appellate Tribunal Chandigarh Bench 'A', Chandigarh for the assessment year 2002-03. The appellant claimed substantial questions of law regarding rectification under Section 154 and deduction under Sections 80HHC and 80IB.
3. The appellant, engaged in the business of manufacturing and trading of garments, filed a return of income declaring deductions under Sections 80HHC and 80IA. The assessment was completed under Section 143(3) of the Act, and a notice under Section 154 was issued for rectification. The order of rectification was passed, challenged before the Commissioner of Income Tax (Appeals), and further appealed to the Tribunal.
4. The High Court heard the arguments and submissions from the appellant's counsel regarding the admissibility of deductions under Section 80HHC. The counsel cited conflicting judgments from different High Courts and the Supreme Court. The Full Bench decision of the High Court regarding rectification parameters was also considered.
5. The High Court referred to the Full Bench decision and upheld the order of rectification passed under Section 154, as the mistake was found to be apparent from the record. The High Court found no illegality or perversity in the findings of the authorities below.
6. The High Court concluded that the issue of rectification in the present appeal was not addressed in the Supreme Court case cited by the appellant. Therefore, no substantial question of law arose, and the appeal was dismissed.