1985 (5) TMI 104 - AT - Income Tax

Summary

Issues:
1. Whether interest under section 214 of the Income-tax Act, 1961 can be allowed when advance tax payments are made after the due dates.
2. Whether the provisions of section 154 could be invoked in a case where advance tax payments were made after the due dates but within the financial year.
3. Whether a mistake apparent on the record exists to rectify an order under section 154 when there are conflicting decisions by different High Courts on the issue.

Analysis:
1. The judgment deals with the issue of allowing interest under section 214 of the Income-tax Act, 1961 when advance tax payments are made after the due dates. The Assessing Officer initially allowed interest under section 214 but later rectified the order based on a decision of the Andhra Pradesh High Court. The Commissioner (Appeals) held the issue to be debatable due to conflicting decisions by different High Courts, leading to the conclusion that there was no mistake apparent from the record to rectify the order under section 154.

2. The question arose whether the provisions of section 154 could be invoked in a case where advance tax payments were made after the due dates but within the financial year. The Assessing Officer relied on the decision of the Andhra Pradesh High Court to rectify the order under section 154. However, the Commissioner (Appeals) considered the issue to be debatable due to conflicting views by various High Courts, leading to the cancellation of the rectification order.

3. The judgment emphasized the principle that a mistake apparent on the record must be obvious and patent, and a decision on a debatable point of law does not constitute a mistake apparent from the record. The conflicting decisions by different High Courts on the issue of allowing interest under section 214 when advance tax payments are made after the due dates led to the conclusion that the issue was debatable, and there was no mistake apparent to rectify the order under section 154.

In conclusion, the appellate tribunal dismissed the appeal, upholding the decision of the Commissioner (Appeals) that the issue involved was debatable, and there was no mistake apparent from the record to rectify the order under section 154. The conflicting decisions by different High Courts on the issue of allowing interest under section 214 in such cases contributed to the debatable nature of the issue.