COMMISSIONER OF INCOME TAX Vs. SATISH KUMAR AGARWAL

JUDGEMENT

(1.) This is an appeal filed by the Revenue under Section 260A of the Income Tax Act (for short 'the Act') against the order dated 28 th May, 2010 passed by the Income Tax Appellate Tribunal (for short "Tribunal"), Delhi Bench "G" in IT Appeal No.1429/Del/2008 for the assessment year 2002-2003.

(2.) The respondent/assessee is an individual. He is engaged in the business of export and was accordingly entitled to the deduction under Section 80HHC of the Act. We are concerned with the assessment year 2002-2003. The assessee filed a return of income on 31 st October, 2002 claiming deduction under the aforesaid section. An assessment was framed by the Assessing Officer by order dated 31 st March, 2004 passed under Section 143(3) of the Act. In this order the Assessing Officer computed and allowed Rs.2,24,38,491/- as deduction under Section 80HHC.

(3.) After the completion of the assessment, a notice under Section 154 of the Act was issued by the Assessing Officer proposing to rectify the assessment order on the ground that the deduction allowed in the assessment order was incorrect to the extent of Rs.1,36,92,769/-. One of the grounds on which the Assessing Officer issued the notice under Section 154 of the Act was that the loss suffered by the assessee from the export of trading goods, amounting to Rs.68,37,193/- ought to have been adjusted against 90% of the export incentives under the proviso to Section 80HHC(3) and the omission to do so in the assessment order passed on 31 st March, 2004 was a mistake apparent from the record which needed rectification.