Rectification of tax credit certificates is barred where attribution of receipts turns on a debatable interpretation, not an apparent mistake.

Rectification under paragraph 8(1) of the Tax Credit Certificate (Corporation Tax) Scheme, 1966 is limited to mistakes apparent from the record. Where the alleged error turns on whether miscellaneous receipts, rent, interest other than interest on securities, or surplus under section 41(2) are attributable to manufacture or production, the point is debatable and cannot be treated as a patent mistake. On that basis, the Income-tax Officer could not amend the tax credit certificates by invoking rectification powers, and the assessee succeeded.

---

---

Issues: Whether the Income-tax Officer could invoke paragraph 8(1) of the Tax Credit Certificate (Corporation Tax) Scheme, 1966 to amend the tax credit certificates on the footing that the income included in the earlier certificates was a mistake apparent from the record.

Analysis: Section 280ZB of the Income-tax Act, 1961 granted tax credit certificates where profits and gains attributable to the manufacture or production of specified articles exceeded the base-year tax, and Section 280ZE empowered the framing of the Scheme. Paragraph 8(1) permitted amendment only to rectify a mistake apparent from the record. The disputed receipts, including miscellaneous receipts, rents, interest other than interest on securities, and surplus under Section 41(2), raised a debatable question as to whether they were attributable to the manufacture or production activity. A point that depends on interpretation and competing views cannot be treated as an obvious or patent mistake.

Conclusion: The rectification was not permissible, because the alleged error was not a mistake apparent from the record. The issue is decided in favour of the assessee.

Ratio Decidendi: Rectification under a scheme or similar provision is confined to obvious and patent mistakes and cannot be used where the alleged error depends on arguable interpretation or a debatable question of attribution.

---