1990 (10) TMI 9

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..... ry 2, 1976. The assessee had leased out its land and also calender machines and sizing machines along with the building. It showed receipt of rent of Rs. 6,000 from the land and of Rs. 60,069 from the calender machines and sizing machines and the building in which they were fitted. The said income of Rs. 66,069 (Rs. 6,000 plus Rs. 60,069) was assessed by the Income-tax Officer under the head "House property". The assessee thereafter filed an application dated April 16, 1977, before the Income-tax Officer for rectification of a mistake in the assessment order. The contention of the assessee in the said application was that the land was not appurtenant to any building of the company not used for its business and was given on lease for 90 year .....

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..... ances of the case, the Tribunal was justified in holding that the assessment of rental income of Rs. 6,000 from land and Rs. 60,069 from plant and machinery and building in which the said plant and machinery had been fitted under the head 'House property' was not a mistake apparent from the record and as such not capable of rectification under section 154 of the Income-tax Act, 1961 ? " Be it recorded that at the time of hearing no one appeared in support of this reference. It is well-settled that section 154 has a very limited application. It enables rectification of a mistake which is apparent from the record. The power under section 154 can be exercised by the Income-tax Officer to correct obvious errors of law and those mistakes whi .....

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..... e of certain facts, whether letting of the assets is exploitation of commercial assets in the course of carrying on of business has to be decided in the light of the facts and circumstances of each case, and each case has to be looked at from a businessman's point of view to find out whether the letting was the doing of a business or the exploitation of his property by an owner. For doing so, the Income-tax Officer would be required to investigate the facts and then apply the law to those facts. In our opinion, the power under section 154 cannot be exercised by the Income-tax Officer in such a situation. The question is a debatable one. For the foregoing reasons, we are of the view that on the facts of this case the mistake that was sough .....

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