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TMI Blog2023 (1) TMI 965X X X X Extracts X X X X X X X X Extracts X X X X ..... inafter referred to as "the Act"), dated 01.06.2018. 2. The grounds of appeal raised by the assessee are as follows: "1. The learned CIT (Appeals) has erred in dismissing the appeal holding that there is no mistake apparent from the record and the rectification application was rightly rejected. 2. The learned CIT (A) failed to appreciate that the disallowance done by the Assessing officer had already become final in favour of Assessee and was accepted by the Department in earlier years in case of Assessee itself and therefore Assessing Officer was required to follow and apply it in the current year. 3. The learned CIT (A) has failed to appreciate the judgments of various Courts and Tribunals which supported the proposition of the Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore the Assessee has an option to choose to go in appeal or file a rectification application within the time prescribed. 7. That on facts and in law the assessee prays that appeal be allowed." 3. Succinct facts are that assessee has filed rectification application under section 154 of the Act, for assessment year 2009-10, before the assessing officer, vide its application dated 22.05.2018. The assessee has stated in the rectification application that assessment under section 143(3) of the Income Tax Act was completed on 29.08.2011, with assessed income of Rs.3,99,43,790/-. In the assessment order under section 143(3) of the Act, there was disallowance of claim under section 80IB of the Act, by excluding income from Scrap sale of Rs.4,92 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate that the AO had referred to the decision of Hon'ble ITAT, Ahmedabad in the case of Standard Oil and greases (ITA No. 3096/A/2007) wherein the Hon'ble bench held that scrap sale of damaged barrel, pail and cartoons in the business of manufacturing of lubricating oils and greases could not be considered as scrap generated in manufacturing process and deduction u/s 80IB was not allowed. Thus, the AO had taken reasoned view on the basis of various decisions of courts and ITAT on this issue and the said order cannot be considered for rectification merely on the ground that earlier years case of assessee was allowed in its favour. The assessment order indicates that such appellate orders were not brought to the notice of the AO in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ount and scrap income. The ld Counsel also argued that as per "Principle of Consistency" such claims may be allowed. Thus, Ld. Counsel submitted that issue has settled, and assessee has been granted deduction under section 80IB of the Act, therefore it should be rectified under section 154 of the Act. 9. On the other hand, Learned Departmental Representative (Ld. DR) for the Revenue submitted that the issue relating to deduction under section 80IB/80IA is a debatable issue therefore it cannot be rectified under section 154 of the Act. Besides, ld DR also stated that assessee filed the appeal against the order of rectification under section 154 of the Act, therefore assessee`s appeal should not be allowed on merit. 10. We have heard both t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le ITAT, Ahmedabad in the case of Standard Oil and greases (ITA No. 3096/A/2007) wherein the Hon'ble Bench held that scrap sale of damaged barrel, pail and cartoons in the business of manufacturing of lubricating oils and greases could not be considered as scrap generated in manufacturing process and deduction u/s 80IB was not allowed. Thus, the AO had taken reasoned view on the basis of various decisions of courts and ITAT on this issue and the said order cannot be considered for rectification merely on the ground that earlier years` case of assessee was allowed in its favour. The assessment order indicates that such appellate orders were not brought to the notice of the AO in the assessment proceedings. Hence, there is no mistake appa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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