TMI Blog1991 (11) TMI 40X X X X Extracts X X X X X X X X Extracts X X X X ..... ombay Hotel (hereinafter referred to as "the assessee") runs a hotel and, for the assessment year 1982-83, was assessed to income-tax by the Income-tax Officer, Ward-A, Special Investigation Circle, Bhubaneswar. On the basis of certain documents seized during a search of the premises of the assessee on August 24, 1981, the figures submitted by the assessee were rejected and an addition of Rs. 60,540 to the declared income was made. In appeal, the addition was reduced by Rs. 50,540 by the Commissioner of Income-tax (Appeals), Orissa. The Revenue challenged the relief granted to the assessee by the Commissioner of Income-tax (Appeals), while the assessee filed a cross-objection supporting the order of the Commissioner of Income-tax (Appeals). ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no tea stall or restaurant gives bills or cash memos for ready made tea or coffee sold by it." These were indicated to be mistakes apparent from the record. The motion for rectification was objected to by the Revenue. However, the Tribunal held that though technically one can say that it is in the discretion of the Tribunal as to what should be the addition in a discrepancy of Rs. 11, the addition of Rs. 60,540 appeared to be beyond justification. As indicated above, the stand of the assessee before the Tribunal in support of the application for rectification was that, even if accepting that there was a discrepancy of Rs. 11, the same could have justified an addition of Rs. 100 and, instead of that, if it is made Rs. 1,00,000, though tech ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is an error ; a fault ; a misunderstanding ; a misconception. "Apparent" means visible ; capable of being seen ; easily seen ; obvious ; plain. A mistake which can be rectified under section 254(2) is one which is patent, which is obvious and whose discovery is not dependent on argument or elaboration. As the facts of the present case clearly go to show, the Tribunal came to the conclusion based on several facts that the addition made by the Assessing Officer was in order. It referred to certain circumstances. As appears from the order impugned in this writ application, the Tribunal was of the view that the enhancement as made appeared to be on the higher side and, therefore, thought it to be unjust. The Tribunal was conscious that tech ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lication for rectification of mistakes allegedly apparent from the record. Therefore, the order of the Tribunal recalling the earlier order is indefensible. The Tribunal also does not appear to have noticed that enhancement of Rs. 60,540 was not made merely for a discrepancy of Rs. 11 as was claimed in the application for rectification. In view of our conclusion that the Tribunal's action in recalling the order is interdicted consequentially the impugned order, annexure-4, is set aside. We notice that the Tribunal, consequent upon acceptance of the prayer for rectification, has dismissed the reference applications of both the assessee and the Commissioner as infructuous. As a consequence of our setting aside the impugned order, annexure-4 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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