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TMI Blog1982 (4) TMI 55X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd., Bombay. For the assessment year 1961-62, the ITO computed the capital employed in the new industrial undertaking of the assessee-company for the purposes of granting partial exemption from tax under s. 15C of the Indian I.T. Act, 1922, at Rs. 13,33,902. It included a sum of Rs. 1,39,113 being the average profit of the assessee-company for the previous year relevant to the assessment year 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the average profits or losses have to be added or deducted for computing the capital employed under s. 15C was a question on which two views were possible. The view expressed by the assessee was not absurd on the face of it. It would not, therefore, be possible to say that there was a mistake apparent from the record which could be rectified by the ITO in the exercise of his jurisdiction under s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s made by the assessee, had subsequently passed an order under s. 154 of the I.T. Act, 1961, taking the view that the inclusion of the amount of the average profit in the capital employed was not justified. The High Court held that the question on a proper interpretation of r. 3(6) was undoubtedly a debatable question and the rule could be interpreted in different ways. It, therefore, held that in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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