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TMI Blog1983 (11) TMI 135X X X X Extracts X X X X X X X X Extracts X X X X ..... m, held that only a sum of Rs. 14,180 should be allowed. The balance was disallowed by his assessment order dated 3-2-1975. The assessee in the appeal filed before the appellate authority claimed the entire amount. The AAC dealt with the matter exhaustively and held that a sum of Rs. 4,57,988 is allowable as revenue expenditure. This sum of Rs. 4,57,988 comprised of three items : (a) Rs. 2,40,451 (b) Rs. 31,706 (c) Rs. 1,85,831 The sum of Rs. 2,40,451 is again made up of the two items : (a) Rs. 1,69,038 (b) Rs. 71,413 In the sum of Rs. 71,413 is included the sum of Rs. 14,180 allowed by the ITO in the assessment itself. The order of the AAC having been passed on 31-3-1978, the ITO gave effect to that order and allowed Rs. 4,57 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... take in the order of ITO such a mistake is beyond the pale of rectification under section 154. (iii) That the order of the ITO dated 31-3-1978 passed under section 154 is beyond the time prescribed for passing such an order as four years have lapsed. All the aforesaid submissions have been opposed by the learned departmental representative. 3. We are unable to sustain any of the contentions raised by Mr. Unni. From a bare perusal of the AAC's order, it is clear that he was aware of the deduction already allowed by the ITO. This has been made clear by him in para 69 of his order which reads as follows : "On page 288 of the paper book the details of expenses of Rs. 71,413 in respect of employees in regular employment with the company ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refore, a clear mistake in the order of the ITO itself. The mistake did not occur in the order of the AAC. The AAC discussed the allowability of the entire expenditure and found that a sum of Rs. 4,57,988 is revenue in character which is to be allowed. We are, therefore, unable to agree that the mistake, occurred in the order of the AAC. The mistake, according to us, has been committed by the ITO in giving effect to the order of the AAC. Nor we are able to agree with the contention of Mr. Unni that there is any argument necessary for coming to this conclusion. The matter is so simple and obvious to us and just by looking to the order of the AAC in juxtaposition with the order of the ITO the mistake is obvious. We may further add that there ..... X X X X Extracts X X X X X X X X Extracts X X X X
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