Law:

Section:

Section 154 of the income-tax act, 1961-Rectification of mistake-Apparent from record -Whether mere fact that a process of computation is involved in determining income or tax liability does not make it a debatable point, however involved said computation may be-Held, yes-Whether where assessee has no grievance with computation or with approach to computation made by ito, court cannot doubt power of rectification-Held, yes. Facts For the relevant assessment year, the assessee was assessed on a certain total income. The assessee, being a domestic company, was liable to pay additional tax on so much of the total income as did not exceed the 'relevant amount of distribution of dividends' by the company. In the original assessment, the ITO failed to take into account such amount. When he discovered the omission, he took up rectification proceedings to add this sum to the sum originally determined as that on which additional tax was leviable. He computed it first by computing the relevant amount of distribution of dividends and by computing the amount on which additional tax was payable by taking total income for the relevant year. On appeal, the Tribunal, having found (i) that the assessee had no objection to the approach made by the ITO; and (ii) that the assessee had not pointed out a 'mistake' or a 'possible different approach' from a different perspective, upheld the rectification proceedings. On reference: Held Whether, on the facts of a case, it is possible to say that there is a 'disputed' question on which two views are possible would depend upon the approach to the case and the attitude of the parties in the case. If the parties do not feel that two views are possible, then there is no scope for consideration of such a question. If computation, however difficult it may be, is made by the ITO, with which computation or with which approach to the computation the assessee had no grievance, the Court cannot doubt the 'power of rectification'. The mere fact that a process of computation is involved in determining the income or the tax liability does not make it a debatable point, however involved the computation may be. Only when there is a possibility of the…

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