Debatable legal issue cannot support rectification of assessment under income-tax law; loss set-off withdrawal failed.

Rectification under the income-tax law is confined to an obvious mistake apparent from the record and cannot be used to revisit a debatable legal issue. The Gujarat HC held that withdrawal of the assessee's set-off for losses linked to minor sons' partnership interests could not be sustained because the alleged error depended on contested questions, including the effect of an earlier Gujarat decision, the relevance of the Board's circular, and the interpretation of the partnership deed. As each issue was arguable and capable of differing views, no mistake apparent from the record existed. The rectification orders were therefore liable to be set aside.

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Issues: Whether the Income-tax Officer could invoke rectification powers to withdraw the assessee's set-off of losses attributable to minor sons' shares in partnership firms, on the ground that the original assessment suffered from a mistake apparent from the record.

Analysis: Rectification under the relevant provisions is confined to an obvious and patent mistake apparent from the record. A question that requires detailed reasoning, admits of more than one view, or turns on a debatable point of law cannot be corrected in rectification proceedings. The controversy here depended on more than one debatable issue, including the effect of the earlier Gujarat decision, the binding force and relevance of the Board's circular, and the proper construction of clause 6 of the partnership deed. Since each of these questions was capable of argument and differing views, the alleged error was not one apparent from the record.

Conclusion: Rectification was impermissible, and the withdrawal of the loss set-off could not be sustained. The assessee succeeded.

Final Conclusion: The assessment could not be reopened or amended under the rectification provision on a debatable legal issue, and the impugned rectification orders were liable to be set aside.

Ratio Decidendi: A debatable question of law is not a mistake apparent from the record and therefore cannot found rectification of an assessment.

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