9911796707
TMI Blog2000 (10) TMI 34X X X X Extracts X X X X X X X X Extracts X X X X ..... es of the case, the Tribunal was correct in holding that the relief under section 80M given to the assessee originally was a mistake rectifiable by the Income-tax Officer under section 154 of the Income-tax Act, 1961 ?" The above being the position, our judgment shall govern each of the two cases, i.e., I. T. R. Nos. 12 an 129 of 1978. The factual position as indicated in the statement of case is as follows : For the assessment years 1968-69 and 1969-70, the assessee, a private limited company, filed its returns of 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) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 41(2)." On March 22, 1973, orders under section 154 of the Act in respect of both the assessment years were passed by the Income-tax Officer. He was of the opinion that deductions permitted under section 80M had been wrongly computed while making the 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . That being the position, he cancelled the orders. The Revenue carried the matter in appeals before the Tribunal. It was urged before the Tribunal by the Revenue that the mistakes in the computation were clearly discernible from the record and the orders under section 154 of the Act had been rightly passed. The assessee's stand, on the other hand, was that the problem was not free from difficulty and needed interpretation of sections BOA and 80B(5) and 80M. That being the position section 154 had no application. The Tribunal proceeded to examine the computation as done by the Income-tax Officer on the merits. After referring to the definitions of various provisions it came to hold that the second stage in the process of computation related ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent" means visible; capable of being seen, obvious; plain. It means open to view, visible, evident, appears, appearing as real and true, conspicuous, manifest, obvious, seeming." A mistake which can be rectified under section 154 is one which is patent, which is obvious and whose discovery is not dependent on argument or elaboration. In our view amendment of an order does not mean obliteration of the order originally passed and its substitution by a new order. What the Revenue intends to do in the present case is precisely the substitution of the order which according to us is not permissible under the provisions of section 154 and, therefore, the Tribunal was not justified in holding that there was mistake apparent on the face of the recor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... we have to do is to compute the total income as it would be before making the deductions under sections 80L and 80M, the first step would be to classify the items of income and losses under the various heads. This presents no difficulty whatever. The computation under section 14 will be as follows for the two assessment years in question : Head of Income 1968-69 1969-70 Rs. Rs. (a) Interest on securities 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 assessment year 1968-69, secti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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