February 2023
Rectification of mistake — Mistake apparent from record — Set-off of loss — Opinion of audit party on manner of set-off of loss — Opinion on a point of law — Not a mistake apparent from record — No reassessment proceedings could also have been permissible — Rectification order set aside
By K. B. Bhujle, Advocate
77 Ambarnuj Finance and Investment Pvt Ltd vs. Dy CIT
[2022] 450 ITR 40 (Del)
A. Y.: 2017-18
Date of order: 2nd November, 2022
Section: 154 of ITA 1961
Rectification of mistake — Mistake apparent from record — Set-off of loss — Opinion of audit party on manner of set-off of loss — Opinion on a point of law — Not a mistake apparent from record — No reassessment proceedings could also have been permissible — Rectification order set aside:
The assessee filed a writ petition challenging the rectification order passed under section 154 of the Income-tax Act, 1961 dated 15th February, 2021, passed by the Deputy Commissioner during the pendency of the assessee’s application for settlement of disputed tax under the Direct Tax Vivad Se Vishwas Act, 2020 and also seeking a direction to reconsider its application for settlement of disputed tax under the 2020 Act for the A. Y. 2017-18.
The Delhi High Court held as under:
“i) There was no mistake apparent in the computation of income in the assessment order dated December 21, 2019, within the meaning of section 154 of the 1961 Act which could have been a subject matter of rectification. The objection raised by the audit party was not a mistake apparent from the record, which could be corrected u/s. 154 of the 1961 Act, but an opinion in law on the manner in which set
