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2022 (5) TMI 46 - AT - Income TaxRectification of mistake u/s 154 - excess interest expenses allowed - AO revealed that partnership deed had not authorized any payment of interest to any partner, however, the Assessee had claimed deduction being interest paid to the partners in its computation of income/ P&L account - HELD THAT:- The Hon’ble Apex Court in the case of TS Balaram Vs. Volkart Brothers [1971 (8) TMI 3 - SUPREME COURT] clearly held that a mistake apparent on the record must be an obvious and patent mistake and not something which has to be established by a long drawn process of reasoning on points where there may conceivably be two opinions cannot be said to be an error apparent on the face of the record. A decision on a debatable point of law is not a mistake apparent from the record. Coming to the instant case it is not in dispute that the AO has passed the order u/s 154 of the Act on a debatable issue, which cannot be construed rectification of any mistake apparent from the recordand by virtue of provisions of section 154 of the Act, the AO is not empowered to do so, hence respectfully following the aforesaid dictum of the Hon’ble Apex Court, we are inclined to quash the order passed by the ld. AO u/s 154 of the Act itself. Ordered accordingly. Consequently, the impugned order is set aside. In the result the appeal filed by the Assessee is allowed.
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