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TMI Blog2014 (1) TMI 992X X X X Extracts X X X X X X X X Extracts X X X X ..... re possible - Merely by submitting that issue was debatable, issue would not become debatable - It was required to be demonstrated how the issue was debatable and/or two views were possible out of which one view was accepted by the AO - The issue has been restored to ITAT for reconsideration. - Tax Appeal No. 1410 of 2007 With Tax Appeal No. 1411 of 2007 - - - Dated:- 26-12-2013 - M. R. Shah And R. P. Dholaria,JJ. For the Petitioner : Mr. KM Parikh, Advocate For the Respondent : Mr. SN Soparkar, Sr. Advocate with Mrs. Swati Soparkar JUDGMENT (Per : Honourable Mr. Justice M. R. Shah) [1.0] As common question of law and facts arise in both these appeals and as such arisen out of the impugned common judgment and order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AO, in exercise of powers under section 154 of the Act, reduced the amount of deduction under section 80HHC by excluding the deduction under section 80IA from the profits of the business as per the mandate of section 80IA(9) of the Act. That on appeals the learned CIT(A) confirmed the orders passed under section 154 of the Act. On further appeal by the assessee before the learned ITAT, by impugned common judgment and order the learned ITAT has quashed the orders passed under section 154 of the Act by observing that as the issue was debatable and out of two views possible, AO while quashing the order under section 143(3) of the Act followed one opinion/view, the said order was not required to be reviewed under section 154 of the Act. [3.1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 80HHC is an issue which was debatable and therefore, on a debatable issue when one possible view has been adopted, it cannot be said that there was a mistake apparent from record. Consequently, it is held that in such a situation the AO was not justified in exercising powers under section 154 of the Act. However, it is required to be noted that while holding so the learned ITAT has not stated anything and/or observed anything as to how such issue was debatable issue and/or which two views were possible. Merely by submitting that issue was debatable, issue would not become debatable. It was required to be demonstrated how the issue was debatable and/or two views were possible out of which one view was accepted by the AO. Even the learned ..... X X X X Extracts X X X X X X X X Extracts X X X X
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