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2011 (2) TMI 1121 - AT - Income TaxRectification of mistakes - assessee had claimed the interest payment against income from other sources in the statement of total income filed by it along with the return & AO passed the order under section 143(3) and specifically referred to the returned income as per statement of total income - whether the AO's view that this treatment constitutes a mistake apparent on face of record is correct or not? - Held that: this cannot be treated a mistake, which is so obvious or patent that the same may come within the ambit of section 154. The AO had duly applied his mind to this issue as he accepted the income as per computation of total income while determining taxable income. It is true that under section 57, only that expenditure is allowable which is incurred wholly and exclusively for such income. It is not a case where interest expenditure incurred by assessee per se was not allowable. But, it is a case where after examining all facts only conclusion could be arrived at regarding allowability or otherwise of the expenditure. Further, the assessee's alternative claim of allowing expenditure, in any case, as business expenditure also cannot be ignored because the funds had been invested in assessee's proprietary business. Thus, conclusion either way could be arrived at after long drawn reasoning. Under such circumstances, the learned CIT(A) rightly observed that it was highly debatable issue for which section 154 could not be invoked.
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