2025 (3) TMI 871

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ion of the Act and therefore, the jurisdiction exercise u/s 154 of the Act is bad in law. The case of the assessee find force from the decision of Hero Cycles (P). Ltd[1997 (8) TMI 6 - SUPREME COURT] held that rectification u/s 154 of the Act can only be made when glaring mistake of fact or law has been committed by the officer passing the order and it becomes apparent from the record. Rectification is not possible if the question is debatable. Moreover, the point which is not examined on fact or in law cannot be dealt with as mistake apparent on the record. We are set aside the order of the CIT (A) and direct the ld. AO to delete the addition. Appeal of the assessee is allowed.
Shri Rajesh Kumar, AM And Shri Pradip Kumar Choubey, JM .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... construing the facts as to the assessee's age. The ld. CIT (A) noted that in Para 1.4, the appellate stated that Mr. Sajid Mowjee is aged 61 years, however ld. CIT(A) noted that in Para 1.6 as well as in the accompanying affidavit, the age of Mr. Sajid Mowjee is shown as 66 years. 05. After hearing the rival contentions and perusing the materials available on record, we find that the ld. AO has initiated the proceedings u/s 154 of the Act by passing an order by making disallowance of ₹ 31,35,000/- in respect of director's remuneration paid in cash, which is not an apparent mistake in the records and cannot be rectified by resorting to the provisions of Section 154 of the Act. In our opinion, the said issue is debatable issue and cann .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... roceedings u/s 154 since the question of determination & quantification of partner's remuneration was a debatable question both on facts and in law. The High Court accepted the assessee's contention and held the question of manner of determination of 'book profit for the purposes of Sec 40(b) was a contentious issue and had been considered by various judicial forums. In the circumstances it was held that such debatable issue cannot be a ground for rectification under Section 154 of the said Act and therefore the order passed u/s 154 was quashed." 06. Considering the facts of the assessee's case in the light of aforesaid decisions, we are set aside the order of the ld. CIT (A) and direct the ld. AO to delete the addition. 07. I .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X