2006 (10) TMI 178

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..... urn of income it claimed set off of brought forward unabsorbed depreciation and, business losses of earlier years. The learned Assessing Officer completed the assessment order under section 143(3) on 11-3-2003. There is not a single word in the assessment order in relation to assessee's claim of brought forward losses and unabsorbed depreciation of earlier years. The assessee thereupon filed an application for rectification under section 154 on 16-4-2003. Thereupon the learned Assessing Officer made an order under section 154 wherein he allowed the assessee set off of earlier years' business losses amounting to Rs. 7,84,628 against business income of the assessee and thus the learned Assessing Officer assessed business income at Nil. But he .....

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..... judgment of Hon'ble Supreme Court, that became law of the land under article 141 of the Constitution and put an end to the debate, if any, on that issue prior to delivery of judgment by the Hon'ble Supreme Court. The learned CIT(A) therefore erred in upholding the order of the Assessing Officer on the ground that it was not a mistake apparent from record. 4. We have carefully considered the rival submissions. That the assessment order made by the learned Assessing Officer suffered from a mistake apparent from record inasmuch as the learned Assessing Officer omitted to consider and decide upon the assessee's claim of set off of brought forward business losses and unabsorbed depreciation of earlier years is not in dispute. This aspect has i .....

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..... round of appeal overlooked has to be adjudicated even if the ground of appeal pertains to a complicated issue on which there may be considerable debate and long drawn process of reasoning. There is no bar in the provisions of section 154 to spirited debate and long drawn reasoning, in the process of rectification of a mistake apparent from record. We therefore do not see justification in the contention of the learned CIT(A) that the assessee could not seek a rectification on which there could be more than one opinion. That being so we are of the view that the matter is required to be restored to the file of the learned CIT(A) for a decision on merit as to whether or not the assessee is entitled to claim set off of unabsorbed depreciation ag .....

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