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TMI Blog2017 (10) TMI 1601X X X X Extracts X X X X X X X X Extracts X X X X ..... on various diversifies decisions it is concluded that the issue is quite debatable and under such circumstances, in our view, it was beyond the powers of the AO, exercisable under section 154 to make an addition on a debatable issue as the original assessment in this case had been completed under section 143(3) of the Act. Merely because another view is possible cannot be a ground to rectify the order under section 154 of the Act as the same cannot be said to be a mistake apparent on record. ITAT Mumbai Bench has also taken a similar view in the case of Beekaylon Synthetics Pvt. Ltd v. ACIT [ 2015 (7) TMI 1401 - ITAT MUMBAI] which we respectfully follow and hold that the AO had no power to make a disallowance u/s 14A of the Act to the book ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellate authority challenging the disallowance on the ground that the notice proposing to rectify the order under section 154 of the Act was not served on the assessee. The assessee also challenged the disallowance on the ground that that the AO did not have the power to make the disallowance under section 154 of the Act and re-compute the book profit under section 115JB. However, the Ld. CIT (Appeals) dismissed the assessee's appeal and now the assessee is before the ITAT challenging the disallowance by challenging the assumption of jurisdiction by the AO u/s 154 of the Act. 3. None was present for the assessee. Entry in the order sheet shows that the case was earlier fixed for hearing on 05/06/2017 and the assessee was not represented on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re vs. ACIT in ITA No.4931/Del/2010, vide order dated 29.07.11 and ITAT Bangalore Bench in the case of JSW Energy Ltd. vs. ACIT in ITA No.244/Bang./2010, vide order dated 22.02.13, have held that the disallowance made under section 14A read with Rule 8D is not to be added while computing the book profits under section 115JB. It has been held that the only actual expenditure debited to the Profit & Loss account is to be taken into consideration while computing the book profit under section 115JB. This shows that the issue is quite debatable and under such circumstances, in our view, it was beyond the powers of the AO, exercisable under section 154 to make an addition on a debatable issue as the original assessment in this case had been compl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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