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TMI Blog1990 (8) TMI 200X X X X Extracts X X X X X X X X Extracts X X X X ..... ccounting period as the journey was performed during the year relevant to asst. yr. 1982-83. He, therefore, issued a notice under s. 154 onthe 28th Oct., 1986and rectified the alleged mistake by adding Rs. 1,60,604 to the income already assessed. The assessee appealed to the CIT(A) but failed. The assessee is now in appeal before us. 4. The learned counsel for the assessee contended that there was no mistake in the assessment order as framed by the ITO on26th Aug., 1983and in any case there was no mistake that the ITO could rectify under s. 154. He referred to the provisions of s. 154 which authorised the ITO to rectify any mistake that is apparent from the record and referred Inter alia to the judgment of the Hon'ble Supreme Court of Indi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th of May, 1981, the expenditure on the purchase of the tickets was incurred as soon as the assessee purchased the tickets from the travel agent and entered into a contractual liability for the tickets and, therefore, even though the payment might have been made in the following year and even though the tour might have actually been undertaken in the following year. The expenditure in question was actually incurred in the relevant accounting period and was rightly claimed by the assessee and rightly allowed by the ITO. He pointed out that while completing the assessment, the ITO had made enquiries on this point and the assessee had furnished the required explanation and, therefore, the ITO's action under s. 154 is nothing but a change of op ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payment was not made within the accounting period did not disentitle the assessee from claiming the amount as an expenditure. The learned counsel for the assessee pointed out that in the assessment proceedings, the assessee had in response to queries by the ITO submitted justification for the expenditure of Rs. 1,60,604. He placed before us a copy of the assessee's letter dt.4th May, 1983in which there are explanation in respect of various items including the amount in question. Then, there is another letter dt.18th May, 1983, a copy of which is at page 8 of the paper book. This letter was submitted to the ITO furnishing further information as desired by the ITO on the preceding date of hearing. With this letter a detailed note about expen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dopted that valuation as his own estimated value of the lands which he wanted to enhance by relying upon the valuation made by another authority namely, the City Civil Court. To such a case s. 59 is clearly attracted but, obviously with a view to avoid the bar of s. 73A, he purported to issue the impugned notice under s. 61 and, therefore, the same is liable to be quashed." 7. In the case before us also the ITO made enquiries about the expenditure in question and then after considering the explanation offered by the assessee did not consider the expenditure or any portion thereof as disallowable. Therefore, the ITO appears to have actually applied his mind to the facts of the case and allowed the expenditure in any case he has to be deemed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ickets are actually utilised by performing the journey. The view which anyone would reasonably take is that the expenditure stands incurred as soon as the tickets are purchased. Even if a view as canvassed by the Revenue is possible that would make the point merely arguable and it cannot be said that other views that was canvassed by the assessee and that was accepted by the ITO was so erroneous as to amount to a mistake apparent from the record. Therefore, in allowing the expenditure there did not come about on record a mistake that was apparent and that the ITO could rectify under s. 154. 9. For the reasons discussed above, we are of the opinion that the expenditure in question is rightly allowed by the ITO in the assessment order and th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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