Ajit K.Sengupta, J. - (1.) In this reference under Section 256(2) of the Income-tax Act, 1961 ("the Act"), at the instance of the Revenue, the following question of law has been referred to this court for the assessment year 1979-80 : "Whether, on the facts and in the circumstances of the case, the Tribunal was correct in law in setting aside the Income-tax Officer's order under Section 154 of the Income-tax Act, 1961, for the assessment year 1979-80 ?"
(2.) Shortly stated, the facts are that the Income-tax Officer completed the original assessment for the assessment year under reference on April 24, 1982. In the original assessment, he allowed investment allowance under Section 32A of the Act on the machinery and plant of cold storage and also allowed deduction in respect of profits and gains from the cold storage under Section 80HH of the Act. Later, the Income-tax Officer was of the opinion that such allowance and deduction was wrongly allowed to the assessee and it was a mistake apparent from the record. He, therefore, by passing an order under Section 154 of the Act on September 6, 1984, withdrew the allowance and the deduction.
(3.) The assessee unsuccessfully appealed before the Commissioner (Appeals) and thereafter came in second appeal before the Tribunal. The Tribunal held that the said mistake was not apparent from the record since the dispute involved was debatable, if the cold storage could be taken as an industrial undertaking within the meaning of Sections 32A and 80HH. The Tribunal, therefore, allowed the appeal. It held that the question involved being debatable was not so simple as to constitute a glaring mistake. The application of Section 154 was held to be not justified.;