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Section 154 of the Income-tax Act, 1961 - Rectification of mistake - Apparent from records - Assessment year 1970-71 - Whether under section 154, ITO can rectify only an order of assessment or an order of refund or any other order passed by him - Held, yes - Whether form ITNS-150 is not an order passed by ITO as it only contains calculation of tax and other dues payable - Held, yes - Whether, ITO, therefore, is not competent to rectify Form ITNS-150 by resort to section 154(1)(a) - Held, yes FACTS For the relevant assessment year the assessee firm filed its return of income late. The ITO made the assessment and while preparing ITNS-150 certain amount was charged as interest under section 139(1) taking the status of the assessee as that of a registered firm. Subsequently, the ITO found that interest had been wrongly charged treating the assessee as a registered-firm. On the other hand interest under section 139 should have been charged treating the assessee as an unregistered firm. In his opinion, it was a mistake apparent from the record and hence he took action under section 154. Pursuant to the notice the assessee appeared before the ITO and contended that there was no mistake apparent from the record which could be rectified. The ITO did not agree and charged enhanced amount of interest under section 139(8). On appeal the AAC held that the previous approval of IAC was required to be obtained since the amount of interest chargeable exceeded Rs. 1,000 on the tax payable by the assessee if treated as an unregistered firm. No such prior approval had been taken and hence it could not be said that there was any mistake apparent from the record which could be corrected by an order under section 154. On further appeal the Tribunal upheld the order of the AAC. On reference : HELD ITNS-150 is certainly not a part of the assessment order. It is only meant for a calculation of the tax payable by an assessee. Section 154(1)(a ) empowers the ITO to "amend any order of assessment or of refund or any other order passed by him with a view to rectifying any mistake apparent from the record. The section has a limited application. The main limitation is that it is only a…

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