2004 (12) TMI 22

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... d bringing it to 10 per cent, was not correct as it relates to a debatable point and does not come within the purview of section 154 of the Income-tax Act, 1961? (ii) Whether, Tribunal was legally correct in holding that depreciation on electrical installations and generator was allowable at 20 per cent, instead of 10 per cent, under the Income-tax Rules, 1962?" - mistake in the original assessmen .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... of the Income-tax Act, 1961 (hereinafter referred to as "the Act'" for the opinion of this court: "(i) Whether, on the facts and in the circumstances of the case, the Tribunal was legally correct in holding that the rectification of mistake relating to incorrect depreciation at 20 per cent, on electric installations and generator and bringing it to 10 per cent, was not correct as it relates to a .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... on 154 of the Act on the ground that depreciation on generator is allowable at 10 per cent, and it was wrongly allowed at 20 per cent. After serving the notice under section 154 of the Act the assessing authority rectified the earlier assessment order by allowing depreciation on generator at 10 per cent, in place of 20 per cent. In appeal, the Commissioner of Income-tax (Appeals) set aside the ord .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... or the applicability of section 154 of the Act it is well established that there should be a mistake apparent from the record. Firstly, there should be a mistake and secondly, it should be apparent from the record. The power conferred under section 154 is not a power of review. An assessing authority cannot be permitted to revise or review his earlier order. The question as to whether the generato .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... take could not be rectified by invoking the provisions of section 154 of the Act by the assessing authority. In view of the above, we answer question No. 1 in the affirmative i.e., in favour of the assessee and against the Department. In view of our finding on question No. 1, question No. 2 does not arise out of the order of the Tribunal. There shall be however no order as to costs.
Case laws .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X