This appeal has been filed by assessee for assessment year 2002-03, which is directed against order of CIT(A), Udaipur dated 20-12-2004. 2. Briefly stated, facts of case are that assessee company filed its return declaring "Nil" income for assessment year 2002-03, on 23-10-2002, after claiming depreciation of Rs. 9,93,17,254. This return was processed on 28- 2-2003 under section 143(1) of Act. assessee company has shown total income at Rs. 2,06,09,595 on basis of book profit calculated under section 115JB of Act. assessee also paid tax of Rs. 15,76,634, as MAT. For purpose of computing income under section 115JB, assessee company has claimed deduction under section 80HHC at Rs. 1,11,01,306 out of book profit on basis of decision of Hon'ble Kerala High Court in case of CIT v. G.T.N. Textile Ltd. [2000] 164 CTR (Ker.) 185; and clause (iv) of Explanation given under section 115JB which according to assessee company, entitled it to reduce amount of profits eligible for deduction under section 80HHC from book profit. Along with computation of book profit under section 115JB, assessee company appended footnote to that effect. assessee company has also filed report from Accountant in Form No. 29B in which claim of Rs. 1,11,01,306 for deduction under section 80HHC has been made for arriving at income under section 115JB. assessee company has also filed certificate i n Form No. 10CCAC for claiming deduction under section 80HHC. Assessing Officer initially allowed this claim of assessee but subsequently withdrew same by resorting to provisions of section 154 of Act. 3. In order dated 31-3-2004, passed under section 154 of Act, Assessing Officer has observed that assessee company has declared 'Nil' income after claiming depreciation of Rs. 9,93,17,254. According to Assessing Officer, book profit as per section 115JB, is computed after making some adjustments as prescribed in this section. According to ld. Assessing Officer one of such adjustments is deduction on account of export profit under section 80HHC and assessee company has filed requisite certificate in Form No. 10CCAC for claiming deduction under section 80HHC for Rs. Nil, whereas in computation of book profit deduction has been wrongly claimed at Rs. 1,11,01,316 under section 80HHC. Hence, Assessing Officer issued notice under section 154 of Act, to assessee company on 9-9-2003. assessee explained vide its letter dated 22-9-2003, that for purpose of computing income under section 115JB it has claimed deduction under section 80HHC at Rs. 1,11,01,306 out of book profit on basis of decision of Kerala High Court and clause (iv) of Explanation given under section 115JB which entitles it to reduce amount of profits eligible for deduction under section 80HHC from book profit. According to ld. Assessing Officer, as per provisions of section 115JB book profit is computed after making some adjustments as prescribed in Explanation to second proviso to section 155JB(2). Assessing Officer stated that one of adjustments is regarding deduction on account of export profit under section 80HHC. According to Assessing Officer, eligible deduction under section 80HHC has to be computed on basis of profit of business computed under head "Profits and gains of business or profession", under clause (1)(b) or (c) of sub-section (3) or (3A) of section 80HHC. According to ld. Assessing Officer, computation of deduction under section 80HHC is governed exclusively by section 80HHC and whatever is quantified under this section can only be considered under section 115JB. clause (iv) of Explanation 2 to proviso of section 115JB(2) simply provides for adjustment of deduction available under section 80HHC. But section 115JB does not provide that calculation of deduction under section 80HHC should be based on book profit method. In other words, according to ld. Assessing Officer, book profit under section 115JB is never basis for deduction under section 80HHC, although for book profit of section 115JB, deduction under section 80HHC is one of adjustments. 4. ld. CIT(A), followed suit and dismissed appeal of assessee company. Now, assessee is before us and has raised following grounds of appeal: "(1) Under facts and in circumstances of case ld. CIT(A) has erred in sustaining order passed by Assessing Officer under section 154. (2) Under facts and in circumstances of case ld. CIT(A) has erred in confirming Assessing Officer action of not allowing claim of deduction under section 80HHC at Rs. 1,11,01,336 in computing book profit under section 115JB." 5. We have heard rival submissions and perused evidence on record. 6. Evidently, grounds of appeal are interrelated and intertwined, so these are being disposed of simultaneously. Before we come to facts of given case we would like to trace history and scope of relevant provisions of section 115JB of Act, inter alia. Section 115JB was brought on statute by Finance Act, 2000, with effect from 1-4-2001. This provides for special provision for payment of tax by certain Companies. Prior to insertion of this section, section 115JA provided for deemed income relating to certain Companies. This provision was relevant in respect of any previous year relevant to assessment year commencing on or after 1-4-1997 but before 1-4-2001. One Chapter XII-B, containing section 115JB, was inserted by Finance Act, 1987 (11 of 1987), with effect from 1988, which provided "Special Provisions Relating to Certain Companies". As result of various tax concessions and incentives, certain Companies, making huge profits and also declaring substantial dividends, were managing their affairs in such way as to avoid payment of income-tax. Accordingly, as measure of equity, section 115JB was introduced that in case of company whose total income as computed under provisions of Income-tax Act, is less than 30 per cent of book profit as computed under section, total income chargeable to tax will be 30 per cent of book profit, as computed. For this purpose book profit was to be net profit as shown in profit and loss account prepared in accordance with provisions of Sixth Schedule to Companies Act, 1956, after certain adjustments. net profit as above will be increased by income-tax paid or payable or provision thereof, amount carried to any reserve, provision made for liabilities other than ascertained liabilities, provisions for losses of subsidiary companies etc., if amounts are debited to profit and loss account. amount so arrived at is to be reduced by: "(i) amounts withdrawn from reserves, if any, such amount is credited to profit and loss account; (ii) amount of income to which any of provision of Chapter III applied, if any such amount is credited to profit and loss account; and (iii) amount of any brought forwards losses or unabsorbed depreciation, whichever is less, as computed under provisions of section 205(1)(b) of Companies Act, 1956, for purposes of declaration of dividends. Section 205 of Companies Act required every company desirous of declaring dividend to provide for depreciation for relevant accounting year. Further, company is required under section 205 to set off against profit of relevant accounting year, depreciation debited to profit and loss account of any earlier year(s) or loss, whichever is less." 7. Section 115J, therefore, involves two processes. Firstly, assessing authority has to determine income of company under provisions of Income-tax Act. Secondly, book profit is to be worked out in accordance with Explanation to section 115J(1) and it is to be seen whether income determined under first process is less than 30 per cent of book profit. Section 115J would be invoked if income determined under first process is less than 30 per cent of book profit. Explanation to sub-section (1) of section 115J gives definition of "book profit" by incorporating requirement of section 205 of Companies Act in computation of book profit. Brought forward losses or unabsorbed depreciation, whichever is less, would be reduced in arriving at book profits. Sub-section (2), however, provides that application of this provision would not affect to carry forward of unabsorbed depreciation, unabsorbed investment allowance, business losses to extent not set off, and deduction under section 80J to extent not set off as computed under Income-tax Act. 8. plain reading of section 115J shows that if assessee is company and its total income determined under Income-tax Act, in respect of previous year, is less than 30 per cent of its book profit, fictitiously it will be deemed that its total income chargeable to tax for relevant previous year was amount equal to 30 per cent of such book profit. total income of assessee shall first to be computed in accordance with provisions of Income-tax Act and if total income so computed is less than 30 per cent of book profit, then profit and loss account of company for relevant previous year shall have to be prepared under section 115J(1A) in accordance with Parts II and III of Schedule VI of Companies Act, 1956. This book profit shall be suitably adjusted so as to satisfy requirements of clauses (a) to (ha) of Explanation to section 115J(1A) and be reduced by amounts mentioned under clauses (i) to (iv) of this Explanation. Amounts by which 'net profit' has to be reduced are given under:- "(i) amount withdrawn from any reserves or provisions if any such amount is credited to profit and loss account. It is also provided that, where section 115JA is applicable to assessee i n any previous year (including relevant previous year), amount, withdrawn from reserves created or provisions made in previous year relevant to assessment year 1997-98 or any subsequent assessment year shall not be reduced from book profit unless book profit of such year has been increased by those reserves or provisions (out of which said amount was withdrawn) under Explanation to section 115JA (2); or (ii) amount of income to which any of provisions of Chapter III, containing sections 10 to 13A, applies, if any such amount is credited to profit and loss account; or (iii) amount of loss brought forwards or unabsorbed depreciation, whichever is less as per books of account. It is clarified that, for purposes of this clause (iii), loss shall not include depreciation; or (iv) amount of profits derived by industrial undertaking from business of generation or generation and distribution of power; or (v) amount of profits derived by industrial undertaking located in industrially backward State or district as referred to in section 80-IA(2)(iv)(b) or section 80-IA(2)(iv)(c) [(with effect from 1-4-2000) section 80-IB(4) and section 80-IB (5)], for assessment years such industrial undertaking is eligible to claim deduction of 110 per cent of profits and gains under section 80-IA(5) [(with effect from 1-4-2000) profits and gains under section 80-IB(4) or section 80-IB(5)]; or (vi) amount of profits derived by industrial undertaking from business of developing, maintaining and operating any infrastructure facility as defined in section 80-IA(12), and subject to fulfilling conditions laid down in section 80-IA(SA) [(with effect from 1-4-2000) in Explanation to section 80- IA(4), and subject to fulfilling conditions laid down in that section 80-IA(SA)]; or (vii) amount of profits of sick industrial company for assessment year commencing from assessment year relevant to previous year in which said company has become sick industrial company under section 17(1) of Sick Industrial Companies (Special Provisions) Act, 1985 (1 of 1986), and ending with assessment year during which entire net worth of such company becomes equal to or exceeds accumulated losses. It is clarified that, for purposes of this clause (vii), 'net worth' shall have meaning assigned to it in section 3(1)(ga) of Act 1 of 1986. For such definition, reference may be made to page 2799 of Vol. 2; or (viii) (for and from assessment year 1998-99) amount of profits eligible for deduction under section 80HHC, computed under clause (a)(b) or (c) of section 80HHC(3) or section 80HHC(3A), as case may be, and subject to conditions specified in section 80HHC(4) and 80HHC(4A); or (ix) amount of profits eligible for deduction under section 80HHE, computed under section 80HHE(3)." 9. Now, section 115JB which provided special provisions for payment of tax by certain companies has been inserted by Finance Act, 2000, with effect from 1-4-2001, as has already been mentioned. This section reads as under:- "(1) Notwithstanding anything contained in any other provision of this Act, where in case of assessee, being company, income-tax, payable on total income as computed under this Act in respect of any previous year total income as computed under this Act in respect of any previous year relevant to assessment year commencing on or after 1-4-2001, is less than seven and one half per cent. Of its book profit, such book profit shall be deemed to be total income of assessee and tax payable by assessee on such total income shall be amount of income-tax at rate of seven and one half per cent. (2) Every assessee, being, company, shall, for purposes of this section, prepare its profit and loss account for relevant previous year in accordance with provisions of Parts II and III of Schedule VI to Companies Act, 1956 (1 of 1956):" 10. From reading of sections 115JA and 115JB, it seems that clause (iv) to proviso beneath Explanation to section 115JB and clause (viii) to proviso beneath Explanation are exactly identical. provisions of section 115JB are applicable up to 1-4-2005. scope of this special provision has been enlarged and certain other requirements are also provided, but provisions relating to incentive benefits under section 80HHC, have not been tinkered with. 11. Now, claim of assessee company is that deduction under section 80HHC has to be reduced by virtue of express provisions of Act given under clause (iv) of Explanation for computing book profit under section 115JB which reads as under:- "The amount of profits eligible for deduction under section 80HHC, computed under clause (a), (b) or (c) of sub-section (3) or sub-section (3A), as case may be of that section, and subject to conditions specified in sub- sections (4) and 4(A) of that section." 12. This Claim has two parts:- (i) amount of profits eligible for deduction under section 80HHC; and (ii) computed under Clause (a), (b) or (c) of sub-section (3) or (3A) of section 80HHC. 13. Obviously, first part simply refers to export profit, which is part of net profit as shown in profit and loss account of company, and second part refers to manner of computation. Here it would be relevant to understand scheme provided by law to compute book profit for purpose of section 115JB. Explanation to sub-section (2) of section 115JB reads as under: "Explanation. - For purpose of this section "book profit" means net profit as shown in profit and loss account for relevant previous year prepared under sub-section (2), as increased by - (a) to (f) ** ** ** if any amount referred to in clauses (a) to (f) is debited to profit & loss account, and as reduced by ** ** ** (vii) accumulated losses." very reading of these provisions and nature of all adjustments referred suggest that adjustments have to be made of amount which as such are part of calculation of net profit. This would lead to interpretation that amount calculated, based on some other figure (profits and gains of business and profession included in calculating total income under normal provisions) has got no relevance in computation of book profit. This logical interpretation is supported by legislative intent. above clause is same to clause (viii) similarly embedded in provisions of section 115JA. This same clause (viii) in Explanation to section 115JA by Finance Act, 1997, with effect from 1st April, 1998, i.e. year later than enactment of provisions of section 115JA, which were brought into statute book with effect from 1st April, 1997. object of insertion of said clause (viii), as per speech of Finance Minister is to exempt export profit from MAT. relevant extract of para 99 of Budget Speech is as under: "I, therefore, propose to make following changes in provisions of MAT:- (i) Export profits will be exempt from MAT and will be eligible for full deduction under section 80HHC." In Notes on Clauses, following was mentioned: "It is proposed to exempt export profits which are eligible for deduction under section 80HHC from purview of this section." Further, following is para 27 of Speech of Finance Minister in Lok Sabha on 7-5-1997: "Clause 37 proposes to amend section 115JA of Income-tax Act regarding MAT so as to exclude profits derived from export of goods or merchandise to which section 80HHC applies from purview of MAT. I propose to extend exclusion to profits derived from export of software which are exempt under section 80HHE of Income-tax Act. . . ." Also clause (iii) of section 115J was inserted by Direct Tax Laws (Amendment) Act, 1989. Para 9.2 of Circular 559 reads as under: "It was pointed out that provisions of section 115J took away 100 per cent exemption which was to be allowed in respect of export profits earned b y exporters and tourism related industry and thus watered down encouragement, which was to be provided to such foreign exchange earning activities. Since intention was that 100 per cent of such profit should be exempt, it was decided that profits, which are exempt under sections 80HHC and 80HHD, should be excluded from purview of section 115J. . . ." above discussion clarifies legislative intend to exclude export profits from purview of MAT under section 115JA. 14. Further, Hon'ble High Court of Kerala in G.T.N. Textile Ltd.'s case (supra) has resolved issue for computing book profit as per section 115J(1A) in case supra in which High Court has given following findings: "Para 5: Section 115J begins with non obstante clause. According to this clause, book profit is to be treated as net profit. Section 80HHC(3) and (3A) give concession to exporters and...... Originally, section 115J of Act did not take into account deductions under section 80HHC and ........ It was only included subsequently, as it was found that non-inclusion of provision under section 80HHC and ....... will cause great hardship to assessee. If profits is to be computed on basis of profits and gains of business or profession that will go against very object of section 115J of Act. Section 115J(1A)(iv) says that amount of loss or amount of depreciation which would be required be set off against profit of relevant previous year as if provisions of clause (b) of first proviso to sub-section 205 of Companies Act are entirely made applicable. Such intention is not there in clause (ii). Hence, we are of view that under clause (iii) Explanation it is not profit as computed under head "Profits and gains of business or profession" that is to be applied, According to us, instead of words "profits and gains of business or profession" occurred in sub-sections (3) and (3A) of section 80HHC or....., word profit that is mentioned in section 115J has to be applied. Para 6, last sub-paragraph: Clause (ii) of section 115J does not say that section 80HHC of Act is made applicable to extent only for calculating deduction. Para 7: Hence, we are of view that Tribunal was correct in interpreting that under section 115J(1A)(iii) of Act, profits will be taken into consideration as profit as per books of account and not calculated under Act." In view of above findings of High Court of Kerala, it is clear that profit should be taken as net profit credited in profit & loss account after making additions and deductions as required to be made in accordance with Explanation to section 115JB. If not so, very purpose of legislation would be defeated in situation like facing by assessee where though on one hand assessee is having export profit eligible for deduction under section 80HHC during year but it is paying tax on income without reducing benefit of export profit. 15. Hon'ble ITAT, Hyderabad 'B' Bench in case of Starchik Specialties Ltd. v. Dy. CIT [2004] 90 ITD 34 has held that same principles would apply to clause (viii) used in section 115JA. In para 9 of order, Hon'ble Bench has held as under: "It is evident from above decision that in terms of Explanation to section 115J or section 115JA, profit to be taken into consideration is book profit, subject to specified adjustment and not total income as computed under normal provisions of Income-tax Act. Actually, contention of revenue goes against provisions specified both in section 115J and section 115JA of Act. Both these provisions levy what is known as minimum alternative tax, and are applicable to what are know as 'Zero Tax Companies'. These companies have substantial book profit and declares dividend to shareholders, but they do not pay Income-tax, by availing various deductions and exemptions which are available under normal provisions of Act. So, under both section 115J and section 115JA, tax is levied on basis of book profit subject to certain adjustment section these provisions come into picture when total income of assessee chargeable to tax under provisions of Act is nil or less than specified percentages of book profit. So, invocation of section 115J and section 115JA implies two distinct procedures - (1) determination of income under normal provisions of Act, which include section 80A(2) and section 80B(5) relied on by revenue, and (2) determination of book profit subject to specified adjustments and comparison of two results obtained by two procedures. So, we are of view that section 80A(2) and section 80B(5) which are applicable only in first procedure, have no role to play in working out deduction under section 80HHC eligible for being reduced for arriving at book profit in terms of clause (iii) of Explanation to section 115J or clause (viii) of Explanation to section 115JA. revenue has also contended that in terms of section 115JA(4) all other provisions of Act shall apply to every assessee in respect of whom provisions of section 115JA are invoked, and so, section 80A(2) and section 80B(5) are also applicable for purpose of determining book profit under section 115JA. We find no force in this contention. Section 115JA(4) itself makes it clear that other provisions apply only when it is not otherwise provided in section. We find that language of section 115JA(1) and Explanation thereto rules out applicability of section 80A(3) and section 80B(5). At any rate, this issue is covered in favour of assessee by decision of Kerala High Court discussed above, and no contrary decision has been brought to our notice. We accordingly decide this aspect of matter in favour of assessee." 16. Hon'ble ITAT Pune Bench, maintaining judicial proprietary, has followed this decision in case of Smruthi Organics Ltd. v. Dy. CIT [2006] 101 ITD 205. "In present case assessee is having profits eligible for deduction under section 80HHC but due to carry forward of losses as per Income- tax Act deduction under section 80HHC is nil. Section 115JB is separate, independent and complete code for computation of tax which starts with non obstante clause. Section 115JB by its legal fiction tax that income of assessee, which is otherwise not taxable as per normal provisions of Income-tax Act. Therefore it is hardship on assessee. Now clause (viii) of its Explanation provides that book profit of assessee shall get reduced by amount of profits eligible for deduction under section 80HHC. intention of Legislature behind introducing this provision was very clear from above paragraph is to provide assessee benefit of export profit. Now assessee is having eligible export profit and it should get deduction of same from book profit. If we go with interpretation taken by Assessing Officer and ld. CIT(A) it will not only be double hardship on assessee but shall also defeat very intention of Legislature. We may also submit that it is settled principle of law that provisions allowing fiscal benefit to assessee should be liberally construed." Otherwise also under section 154 of Income-tax Act, 1961 deals with order for rectification of mistakes in order or intimation made by Assessing Officer, which are apparent on records. From plain reading of section it is very clear that only mistakes, which are apparent on record can be rectified under this section. Further, it is well settled law that where issue on which rectification is proposed is one which involves debatable point of law or where it involves statutory provision and there is reasonable scope for more than one kind of interpretation being placed on provision in question, remedy of rectification cannot be available in this section. In present case assessee had claimed deduction on basis of Kerala High Court decision in G.T.N. Textile Ltd.'s case (supra). Hence now holding that assessee has wrongly claimed deduction is apparently debatable issue, which cannot be said to be mistake apparent on records. Such debatable issue cannot be subject matter of order under section 154. 'mistake apparent' is mistake that is manifest, plain or obvious, mistake that can be realized without debate or dissertation. plain meaning of word 'apparent' is that it must be something, which appears to be ex facie that it is incapable of argument or debate. mistake can be regarded as 'apparent' only when it is glaring obvious or self evident mistake. Supreme Court in case of T.S. Balaram, ITO v. Volkart Bros. [1971] 82 ITR 50 has held that mistake apparent on record must be obvious and patent mistake and not something which can be establish by long drawn process of reasoning on points on which there are conceivably be two opinions. decision on debatable point of law is not mistake apparent from record. Reliance can also be placed on following decisions: CIT v. Maharaja Shri Umaid Mills Ltd. [1987] 164 ITR 268 (Raj.) CIT v. Udaipur Distillery Co. Ltd. [2003] 133 TAXMAN 383 (Raj.) CIT v. Jayana Cold Storage & Ice Factory [2003] 260 ITR 430 (All.) CIT v. Bimetal Bearings Ltd. [1998] 232 ITR 542 (Mad.) Satishchandra & Co. v. CIT [1998] 234 ITR 703 (Kar.). It is also evident from submissions of ld. A.R., that department itself is taking different view in different assessment years. In assessment year 1998- 99, Assessing Officer allowed claim of assessee after considering decision of Hon'ble Kerala High Court. For assessment year 2002-03, appeal of assessee is allowed by CIT(A) on this issue. Since disallowance made by Assessing Officer is not mistake apparent from record as envisaged by law, order passed under section 154 is liable to be quashed. Consequently, we quash impugned order passed under section 154 of Act. 17. In result, appeal stands allowed. *** BANSWARA SYNTEX LTD. v. ASSISTANT COMMISSIONER OF INCOME TAX