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2017 (3) TMI 809 - AT - Income TaxRectification of order u/s 154 - Corporation tax received from the tenants - AO stated that the income that the municipal taxes should have been formed part of the annual value of the let out properties thus rectified the order of ld. CIT passed u/s 264 - Held that:- There was no direction in the order of the ld. CIT u/s 264 of the Act for adding the municipal taxes in the annual value of the properties. When there was no such direction then the view of the AO assuming the apparent mistake in the order of the ld. CIT u/s 264 of the Act is not sustainable in the eyes of law. The provisions of section 154 of the Act are very clear and the same can be resorted by the AO only in a case where the mistake is apparent from the records. While doing so, we find support and guidance from the judgment of the Hon’ble Supreme Court in the case of ITO Vs. Vokart Bros [1971 (8) TMI 3 - SUPREME Court ] Thus we hold that there was no mistake apparent from the record in the order of the ld. CIT passed u/s 264 of the Act. Also in case the AO wishes to rectify its original order u/s 147 of the Act then also the same needs to be rectified within four years as contemplated under the provision of section 154 of the Act. In the instant case the AO has rectified the order after the expiry of four years which is also not valid in the eyes of law. - Decided in favour of assessee
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