| Case ID |
ffd47350-f6c8-45aa-bdaa-db8618d754ee |
| Body |
View case body. Login to View |
| Case Number |
TAX CASE (APPEAL) NO. 1106 OF 2007 |
| Decision Date |
Jul 25, 2008 |
| Hearing Date |
Jul 25, 2008 |
| Decision |
The Madras High Court dismissed the appeal filed by the Revenue, affirming that a debatable issue cannot be rectified under section 154 of the Income-tax Act. The court upheld the decision of the Income-tax Appellate Tribunal, which had allowed the appeal of the assessee. The court reiterated that a mistake apparent on the record must be an obvious and patent mistake, and not something that involves a long drawn process of reasoning. Therefore, rectification under section 154 was not permissible in this case. |
| Summary |
In the case of Commissioner of Income-tax v. Y. K. Shoji Stone Indo (P.) Ltd., the Madras High Court addressed the issue of rectification of assessment under section 154 of the Income-tax Act, 1961. The case revolved around the deduction of section 80HHC from the book profit, where the revenue contended that the Assessing Officer made a mistake by deducting it from 30% of the book profit instead of the whole profit. The court held that a debatable issue cannot be a subject for rectification under section 154. The decision relied on the precedent set by the Supreme Court in T. S. Balaram, ITO v. Volkart Brothers, emphasizing that a mistake must be obvious and patent, not requiring extensive reasoning. This judgment reinforces the principle that apparent mistakes are the only ones that can be rectified under section 154, safeguarding against misuse of the provision for contentious issues. The case highlights the importance of understanding the scope of rectification provisions in tax law and serves as a guiding precedent for similar future disputes. |
| Court |
Madras High Court
|
| Entities Involved |
Commissioner of Income-tax,
Y. K. Shoji Stone Indo (P.) Ltd.
|
| Judges |
K. Raviraja Pandian,
P. P. S. Janarthana Raja
|
| Lawyers |
Naresh Kumar
|
| Petitioners |
Not available
|
| Respondents |
Y. K. Shoji Stone Indo (P.) Ltd.
|
| Citations |
2008 SLD 2417,
(2008) 304 ITR 390
|
| Other Citations |
T. S. Balaram, ITO v. Volkart Brothers [1971] 82 ITR 50 (SC),
CIT v. Hero Cycles P. Ltd. [1997] 228 ITR 463 (SC)
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
154,
80HHC
|