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TMI Blog2011 (12) TMI 252X X X X Extracts X X X X X X X X Extracts X X X X ..... d 30.06.2008 of the learned Commissioner of Income-tax (Appeals) in the matter of an order dated 27.03.2007 passed under sec. 154 of the Income-tax Act, 1961 (the Act) by the Assessing Officer for the Assessment Year 2004-05, the grounds of appeal raised by the assessee are as under:- "1. On the facts and circumstances of the case, the Learned CIT(A) has erred, both on facts and in law, in confirming the order passed by the Assessing Officer as the order passed u/s 154 of the Income Tax Act, 1961 is bad and against the provisions of the section in spite of the acceptance that rectification of mistake apparent from record should not be debatable. 2. The Learned CIT(A) has erred in not considering the facts of the case that the appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sidered. Section 154 deals with rectification of mistake apparent from record, be it of law or of facts. Only those mistake can be rectified decision on which is possible without long drawn process of reasoning or debate. The mistake must be apparent from record and should not be having two conflicting interpretations thereon. In the appeal under consideration the appellant has claimed an amount of Rs. 55,55,311/- in its profit and loss account and breakup of this amount is shown in Schedule O to the balance sheet in which foreign exchange fluctuation appears at Rs. 1,96,800/-. However ion the Notes to Accounts it has been specifically mentioned under item nos. 3 4 that the company has not incurred expenditure/purchase in foreign currency ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disallowance of losses on foreign exchange fluctuation/expenses. Therefore, our this order shall confine only to the amount of Rs. 1,96,800/-, which was disputed by the assessee before the learned CIT(A) as well as before us. 5. On perusal of sec. 143(1) of the Act, we find that sec. 143(1) of the Act was amended with effect from June 1, 1999 whereby certain powers available with the AO to make prima facie adjustment against allowable and disallowable claims and deductions while processing the return of income under sec.143(1) of the Act, were done away with, and the power was confined only to make arithmetical calculation of tax, penalty or interest payable on the basis of return of income filed by the assessee. Any arithmetical error in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion and re-determine the income in purported exercise of power under sec. 154 of the Act. The power to rectify intimation issued under sec. 143(1) on or after 1.06.1999 cannot go beyond the scope and effect of sec. 143(1) of the Act. What could not have been done directly while making intimation under sec.143(1) on and from June 1, 1999, cannot be done indirectly in the garb of rectification of power given under sec. 154(1)b) of the Act. Therefore, the power of rectification under sec. 154 of the Act should be limited to the scope and power of making intimation under sec. 143(1) of the Act, and as such the power of rectification under sec. 154(1)(b) should be limited to the matters falling within the scope and ambit of sec. 143(1) effectiv ..... X X X X Extracts X X X X X X X X Extracts X X X X
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