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2013 (1) TMI 46 - HC - Income TaxScope of Section 154 - Mistake apparent from the record – Whether decision on debatable point of law is mistake apparent on the record - Difference between change of opinion and the rectification of mistake - Rectifiable mistake – Advertisement in newspapers & articles given to the stockiest and dealers claim as business expenditure u/s 37(3A) – After completion of assessment - AO passes order u/s 154 on the ground that advertisement was not made in small newspapers - and the presentation articles were given under the scheme to the stockiest and not to the consumers, was a debatable issue - Held that:- As concluding from the fact of the case that during the course of assessment the claims were duly scrutinized, considered and allowed in respect of expenses claimed both under the head. Following the decision in case of In Mepco Industries Ltd., (2009 (11) TMI 24 - SUPREME COURT), Apex Court has drawn the difference between change of opinion and the rectification of mistake - a rectifiable mistake is mistake, which is obvious and not something, which needs to be established by a long drawn process of reasoning, or where two opinions are possible. It must be a patent mistake, which is obvious. Its discovery should not depend on elaborate arguments. - Therefore, the order u/s 154 was not made on any mistake apparent from the record, which was a rectifiable mistake, but was change of opinion by which the department had to adopt the reasoning on which two opinions should be possible. In favour of assessee Interest u/s.139 (8) – Rectification of order u/s 154 – Mistake in calculation of month for charging interest u/s 139(8) - Due date of filing return was 31.7.1979 – Return was filed on 31.12.1979 - Held that:- In case Laxmi Rattan Cotton Mills (1973 (4) TMI 29 - ALLAHABAD HIGH COURT) that a month, must be taken to mean a period of 30 days - the word ''month' is to be taken to mean a period of 30 days and thus the delay for charging interest was of five months and not of four months. The mistake, therefore, was obvious and apparent to on the record and was rectifiable mistake for which proceedings under Section 154 could be taken. - In favour of revenue Advance tax – Whether the amount deposited prior to 31st March, 1979, as advance-tax but after the due date can be considered for the purposes of the computation of interest - The assessee had paid Rs.38,700/- on 21.10.1978 - The advance tax was due by 15.9.1978 - The AO felt that the belated payment could not be treated as advance tax - Held that:- The amount deposited prior to 31st March, 1979 could be treated as advance tax. After the due date it could not be treated as advance tax for the purposes of computation of interest. It was admitted that amount was deposited after the due date and thus A.O. could not have deducted it to arrive on an amount on which interest is to be charged. It was a mistake apparent from the record and which was rectifiable and which could be corrected u/s 154. In favour of revenue
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