Law:

Section:

Section 154 of the Income-tax Act, 1961 - Rectification of mistakes - Apparent from records - Assessment years 1969-70 to 1973-74 - Whether where assessee did not furnish requisite details about fulfilment of conditions laid down in section 80J(4) and ITO passed assessment order without granting relief under section 80J, there was no error apparent on face of assessment order justifying rectification under section 154 - Held, yes FACTS The assessee-firm did not file any claim for deduction under section 80J and no such claim was allowed in the orders of assessment. Subsequently, the assessee filed applications under section 154 before the ITO for rectification of a mistake alleged to have occurred in the assessment orders by not allowing deduction under section 80J. Acting on those applications, the ITO rectified the relevant assessment orders by allowing the deductions claimed by the assessee. In the opinion of the Commissioner, as there was no claim by the assessee in its returns of income or at the time of the assessment proceedings, there was no mistake apparent from the records of the relevant assessment orders justifying rectification under section 154. Accordingly, the rectification orders were set aside after notice and hearing given to the assessee. On appeal, the orders passed by the Commissioner were upheld by the Tribunal. On reference : HELD It cannot be disputed that unless the conditions laid down in section 80J(4) are fulfilled, an assessee is not entitled to any deduction under section 80J. In the instant case as pointed out by the Tribunal in its returns, the assessee made a claim for deduction under section 80J, but did not furnish details about fulfillment of conditions laid down under section 80J(4). The profit and loss accounts and the balance-sheets relied on by the assessee also did not disclose fulfillment of the requisite conditions under section 80J(4). Under these circumstances, it could not be said that there was any error apparent on the face of the assessment orders, justifying rectification under section 154. If the assessee had furnished details as per the requirement of section 80J(4) besides making a claim for deduction under…

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