The Commissioner Of Income Tax - Central - I v. M/S. Blue Skies Pvt. Ltd. Mumbai

k IN THE HIGH COURT OF JUDICATURE AT BOMBAYORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.466 OF 2010 The Commissioner of Income Tax - Central - I.. Appellant.Vs.M/s. Blue Skies Pvt. Ltd. Mumbai .. Respondent. Mr. Suresh Kumar, for the Appellant.Mr. Ajay R. Singh for Respondent. CORAM: J.P. DEVADHAR & K.K. TATED, JJ.DATE: 2ND SEPTEMBER, 2011. P.C. 1Whether the ITAT was justified in holding that the Assessing Officer has erred in assuming the jurisdiction under section 154 of the Income Tax Act, 1961, is the question raised in this Appeal. 2In the scrutiny Assessee for Assessment Year 2002-2003 the Assessing Officer had determined the total income under section 115JB by excluding amount of Rs.1,10,00,000/- received by the Assessee on surrender of tenancy right as the said amount was invested and the Assessee was entitled to the exemption under section 54EC of the Income Tax Act, 1961. 2 904 itxa 466.10.doc 3Thereafter, the Assessing Officer invoked jurisdiction under section 154 of the Income Tax Act and passed an order seeking to rectify the Assessment by including the amount of Rs.1,10,00,000/- received by the Assessee on transfer of tenancy rights in the computation of income under Section 115JB of the Act. The CIT (A) as also the ITAT have held that the issue being debatable, the Assessing Officer was not justified invoking section 154 of the Income Tax Act, 1961. In our opinion, the question as to whether the amount received on surrender of tenancy rights on which the benefit of exemption under Section 54EC was available could be included in the computation of income under Section 115JB is a debatable issue. Therefore, no fault can be found with the decision of the ITAT in holding that in the facts of the present case, the Assessing Officer was not justified in invoking Section 154 of the Act. Accordingly, Appeal is dismissed with no order as to costs. (J.P. DEVADHAR, J.) (K.K. TATED, J.)