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TMI Blog1979 (7) TMI 149X X X X Extracts X X X X X X X X Extracts X X X X ..... eipt of Rs. 54,209 to Rs. 36,000) should be allowed. 2. The stated facts are that after making the assessment the ITO issued a notice under s. 154 to the assessee on 15th April, 1977 proposing to rectify the assessee on the calculation of depreciation and profit on sale of typewriter under s. 41(2) The assessee in its reply dt.18th April, 1977 and in its subsequent letter dt. 8th July, 1977 did ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee s appeal the AAC allowed the assessee s contention in the following words. It is clear from the order of the ITO that the addition of Rs. 54,209 has not been reviewed in the context of the reasoning given in the AAC s order which leads to the conclusion that there is a mistake in the determination of the figure of the interest added at Rs. 54,209 and that the figure of Rs. 36,000 shou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... members, such as Smt. Chandrakala Ruia, Sri Sashikant Ruia. and Sri Ravikant Ruia, on which the interest received by the assessee was nil or negligible compared to the interest payments Taking the average utilisation and calculation the rate of interest at 12 per cent the ITO made the addition of Rs. 54,209 on account of under charged interest. The AAC considered the various aspects of The disallo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich could be rectified under s. 154. It has been held by the Supreme Court in T.S. Balaram vs. Volkart Bros. (1971) 82 ITR 50 (SC) that a mistake apparent from the record must be an obvious and patent mistake and not something which has to be established by a long drawn process of reasoning on points on which there may be conceivably two opinions Applying this ratio we are unable to hold that the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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