IN THE HIGH COURT OF DELHI AT NEW DELHI 
 . 
   ITA 173/2012  
 . 
 ITA 174/2012 
 . 
 . 
 . 
 CIT            ..... Appellant 
 . 
 Through Mr. Kamal Sawhney, sr. standing counsel 
 . 
 versus 
 . 
 . 
 . 
 INDIAN FARMERS and FERTILIZERS 
 . 
 CO OPERATIVE LTD       ..... Respondent 
 . 
 Through 
 . 
 CORAM: 
 . 
 HON'BLE MR. JUSTICE SANJIV KHANNA 
 . 
 HON'BLE MR. JUSTICE R.V.EASWAR 
 . 
 . 
 . 
 O R D E R 
 . 
    26.03.2012 
 . 
 . 
 . 
 These appeals by the Revenue, which relate to assessment years 
 2003-04 and 2004-05 arise out of orders passed by the Assessing Officer 
 under Section 154 of the Income Tax Act.  By the said orders, Assessing 
 Officer had disallowed prior period expenses and reduced the rate of 
 depreciation on computer accessories and peripherals from 60% to 25%. 
 . 
 2. The orders under Section 154 of the Act were set aside by the 
 Commissioner of Income Tax (Appeals) holding that these were debatable 
 issues, which do not fall in the four corners of the Section 154 of the 
 Act. 
 . 
 3. By the impugned order, the Tribunal has dismissed the appeals filed 
 by the Revenue. 
 . 
 4. In our opinion, the appeals were rightly dismissed and Assessing Officer had erred in invoking Section 154 of the Act.  Power under 
 Section 154 of the Act cannot be exercised to rectify errors or mistakes 
 which are debatable and on which two views are possible.  The two 
 additions/disallowances made by the Assessing Officer were both on 
 debatable issues.  On the question of rate of depreciation two views are 
 possible and there is a decision of Delhi High Court in favour of the 
 assessee.  On the first issue relating to prior period expenses, in other 
 assessment years we have agreed with the assessee and dismissed the 
 appeal of the Revenue.  The present appeals do not have any merit, as 
 such no substantial question of law arises. 
 . 
 5. Appeals are accordingly, dismissed. 
 . 
 . 
 . 
 SANJIV KHANNA, J 
 . 
 . 
 . 
 . 
 . 
 R.V.EASWAR, J 
 . 
 MARCH 26, 2012/vld 
 . 
 . 
 . 
 $ 22 to 25, 29 and 30 
 . 
 . 
 .