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Commissioner Of Income-Tax vs Calcutta Steel Co. Ltd. on 9 April, 1980

It must be glaring, obvious or self evident mistake. If it is a mistake which requires to be established by complicated process of investigation, argument or proof, it cannot be regarded as a mistake apparent from record. It should be one which could be discerned with same proposition after a judicial probe into the assessment records without long drawn process of reasoning and always no two reasonable contrary opinions are conceivable. Hon'ble Calcutta High Court in the case of CIT Vs. Calcutta Steel Co. Ltd. (1985) 153 ITR 488 (Cal) has categorically held that a mistake apparent from record must be an obvious mistake and patent mistake and not something which can be established by a long drawn process of reasoning on points on which there may be conceivably two opinions. Here in the present case before us also that is the value of the property i.e. the land in question, as accepted by the AO during the course of assessment proceedings u/s. 143(3) of the Act, is not accepted by the AO while carrying out rectification u/s. 154 of the Act for the reason that the valuer has computed the building portion while computing fair market value of this property but he failed to understand that the building portion also includes a portion of land admeasuring about 39396 sft and even otherwise the valuation is a highly debatable issue. Hence, the rectification carried out by AO on the basis of valuation report consists of two opinions and assumption of jurisdiction by invoking section 154 of the Act is without legal sanction. Accordingly, we quash the orders of the lower authorities and this issue of assessee's appeal is allowed.
Calcutta High Court Cites 33 - Cited by 7 - S Mukharji - Full Document
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