COMMISSIONER OF INCOME TAX Vs. AMBATTURE CLOTHING LTD

JUDGEMENT

(1.) The Revenue has come forward with this appeal challenging the order of the Tribunal dated 18.12.2009 passed in ITA. No. 1363 of 2008. The assessment year pertains to 2003-04. The issue arose out of rectification order passed by the Assessing Authority by order dated 11.06.2007 invoking his power under Section 154 of the Income-tax Act.

(2.) According to the Assessing Authority, the assessee, which is an export concern, claimed the benefits under Section 10A/10B of the Act, apart from claiming deduction under Section 80HHC of the Act, for the remaining 10% of the profits, which was to suffer tax, after applying Section 10A/10B of the Act. According to the Assessing Authority, such a claim made under Section 80HHC in respect of the remaining 10% of the profits amounted to a claim of double deduction, which was not permissible. On the said basis, the Assessing Authority took the view that the said issue was an apparent mistake on the face of the record, which he rectified by passing his order dated 11.06.2007.

(3.) The Commissioner of Income-tax (Appeals) having partly allowed the appeal, the respondent approached the Tribunal. The Tribunal held that such a claim made under Section 80HHC of the Act for the remaining 10% of the profits cannot be held to be a mistake apparent on the face of the record, inasmuch as the view taken by the Assessing Authority in the assessment order was a possible view. In other words, the Tribunal held that it cannot be said that there was any error apparent on the face of the record in order to invoke Section 154 of the Act and by passing a rectification order, virtually passed an order of review of Assessing Authority's original order of assessment.