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TMI Blog2000 (10) TMI 34X X X X Extracts X X X X X X X X Extracts X X X X ..... f income showing loss of Rs. 54,055 and Rs. 1,14,945, respectively, in respect of incomes from (a) interest on securities, (b) house property, (c) business of running hotels at Agra and Kasauli and plying of taxis in U. P., (d) dividends, and (e) capital pins. The assessments were completed for the two years on December 31, 1971, and January 12, 1972, respectively. The computation of income for two years was done as follows : "1968-69 Rs. Rs. (a) Interest on securities 135 (b) Income from house property & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; 20,028 (c) Business (loss) 78,634* (d) Income by way of dividend 74,001 Less : Exempt under s. 80L 500 Exempt under s. 80M @ 60% 44,600 29,401 49,572 & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e original assessment. Before passing order under section 154, the assessee was granted an opportunity to have its say. Objections were filed by the assessee questioning the legality of proceedings and the proposed manner of computation. The Assessing Officer did not accept the stand and proceeded to pass orders under section 154 of the Act and the income was computed in the following manner for the two years 1968-69 Rs. (a) Interest on securities 135 (b) House property income 21,817 (c) Profit under s. 41(2) 1,717 (d) Income from dividends ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... p; Rs. (a) Interest on securities 143 (b) House property income 20,028 (c) Income from dividends 74,001** -------- 94,172 (d) Less : Business loss 1,04,723* &nbs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... omputation related to arriving at figures of gross total income. It went on to compute the deductions under sections 80L and 80M and it did not find any substance in the plea of the assessee that controversial issues were involved. The orders of the Income-tax Officer were restored by setting aside the order passed by the Appellate Assistant Commissioner in the first appeal. On being moved for reference, the question as set out above has been referred. There is no appearance on behalf of the assessee in spite of notice. We have heard learned counsel for the Revenue. Since a reference has been made by the Tribunal, we have taken up the cases for hearing on the merits, notwithstanding assessee's non-appearance. Counsel for the Revenue submitted that what would be the computation under section 80M is a matter of pure arithmetic and calculation. Even, if some analysis of the provisions is called for in this regard, that does not affect the powers conferred under section 154 of the Act. A bare look at section 154 of the Act makes it clear that a "mistake apparent from the record" is rectifiable. In order to attract the application of section 154, the mistake must exist and the same m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ode, the words are "an error apparent on the face of the record". The two provisions do not mean the same thing. The power of the Tribunal in section 154 to rectify "any mistake apparent from the record" is undoubtedly not more than that of the High Court to entertain a writ petition on the basis of "an error apparent on the face of the record." (see T. S. Balaram, ITO v. Volkart Bros. [1971] 82 ITR 50 (SC)). "Mistake" is an ordinary word but in taxation laws, it has a special significance. It is not an arithmetical error which, after a judicious probe into the record from which it is supposed to emanate is discerned. The word 64 mistake" is inherently indefinite in scope, as to-what may be a mistake for one may not be one for another. It is mostly subjective and the dividing line in border areas is thin and indiscernible. It is something which a duly and judiciously instructed mind can find out from the record. In order to attract the power to rectify under section 154, it is not sufficient if there is merely a mistake in the order sought to be rectified. The mistake to be rectified must be one apparent from the record. A decision on a debatable point of law or a disputed question ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 135 143 (b) Income from house property 21,817 20,028 (c) Profits and gains of business or profession 76,422 1,00,663 (d) Capital gains 14,994 Nil (e) Income from other sources (dividends) 59,435 74,001 (ii) Now we come to the second stage of arriving at the figure of gross total income. For the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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