Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2024 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (4) TMI 744 - AT - Income TaxValidity of order passed u/s 154 - Amount to a review of the original assessment order or not - investment in the property was not properly explained by the assessee during the year under consideration, there is a mistake apparent from record rectifiable u/s 154 - whether question is not a mistake apparent from record? - as argued addition u/s. 68 made despite the assessee having explained the source of investment with proper documentary evidences - HELD THAT:- As per well established law it is not in dispute that the source of the investment which was accepted by AO in his original assessment order cannot be revised in an order u/s 154 as it cannot be said to be a mistake apparent from record. We find that AO wants to change his view in the garb of rectification of mistake u/s 154 which is not permissible under the law. We find that the impugned order of the AO was passed u/s 154 and Section 154 of the IT Act mandates rectification of mistake apparent from record. The Hon’ble Apex Court in the case of ITO vs. Volkart Brothers and others [1971 (8) TMI 3 - SUPREME COURT] has held that “a mistake apparent on record must be an obvious and patent mistake and not something which can be established by a long drawn process of reasoning, on points on which there may be conceivably two opinions. A decision on a debatable point of law is not a mistake apparent from the record. Thus, respectfully following the aforesaid binding principle rendered in ITO vs. Volkart Brothers [1971 (8) TMI 3 - SUPREME COURT], we hold that the impugned order passed u/s. 154 of the Act of the Assessing Officer is invalid and liable to be quashed. Appeal of the assessee is allowed.
|