Sec. 154 of Income Tax Act, 1961— Rectification of Mistake—CIT(A) was not justified in confirming the action of AO for making the rectification under s. 154 as issue was debatable.

Facts: Ground raised by assessee in appeal is that order passed by AO is against the law and facts applicable in the case of the assessee and applicability of s. 115BBE in the case of surrendered income in the course of survey is debatable issue and hence is not covered under the purview of s. 154 and it is not a mistake apparent from records.

Held, that it is an admitted fact that the AO invoked the provisions of s. 154 and held that the surrendered amount of the assessee was subject to tax @ 30 per cent as per the provisions of s. 115BBE. However, on the said issue the Tribunal Jodhpur (SMC) Bench vide its aforesaid referred to order dt. 25th May, 2018 held that the provisions of s. 115BBE were not applicable if the surrender was made on account of excess stock found during the course of survey. So, the issue was a debatable, therefore, CIT(A) was not justified in confirming the action of AO for making the rectification under s. 154. Accordingly, the impugned order is set aside and it is held that the provisions of s. 154 were not applicable in the present case and the AO was not justified in making the rectification’s under s. 154. In the result, the appeals of the assessees are allowed. - PAWAN KUMAR (HUF) V/s ITO - [2020] 205 TTJ 810 (ITAT-JODHPUR)