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2015 (9) TMI 1165 - AT - Income TaxMaintainability of the invocation of section 154 - rectification of mistake - Held that:- These are section 154 proceedings, scope of which is limited to mistakes apparent from record, so that issues that admit of debate stand excluded at the threshold. The discharge of the liability, implying payment to the beneficiaries, the employees to whom it is due/payable, and for payment to whom the sum/s is set aside, either by the assessee or on its behalf by the transferee company, has not been shown or even claimed, much less during the relevant previous year, which alone is relevant for claiming or being allowed deduction u/s. 43B, i.e., the provision under which the allowance had been earlier made, and stands reversed subsequently through recourse to s. 154. The primary condition of s. 43B, thus, stands not met - a fact which is not denied and, besides, is borne out of the record. A mistake, rectifiable u/s. 154, it is trite, could be either of fact or of law. The allowance of deduction of the impugned sums u/s. 43B was thus clearly a mistake apparent from record, liable to be rectified u/s. 154. This, quite simply, is the only issue relevant and, in any case, represents the core of the matter; the various aspects discussed being only to address the various arguments/contentions raised, and which again clarify an undisputed state of affairs, both on facts and in law. The deduction, therefore, could only be claimed in the year of payment. As clarified in Mysore Spg. & Mfg. Co. Ltd. v. CIT [1966 (2) TMI 82 - BOMBAY HIGH COURT], we may further add, it is not necessary that the particular business, to which the deduction (in computing its business income) relates, is carried out by the assessee during the relevant year. We decide accordingly. - Decided against assessee.
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