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The Kerala High Court in (2021) 18ITR-OL 459 stopped the AO from changing the method of computing deduction u/s 36(1) (viia). In this case the AO initiated rectification alleging excess allowance of deduction in original scrutiny assessment while referring to eligibility criteria.

The High Court held that a mistake which is appreciated upon due deliberation and consideration of the very same circumstances for recording change of opinion/conclusion does not come within the ambit of section 154.

Apparently therefore in such a situation there may be no reopening possible u/s 147/148 as well if we go by this understanding.

 

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