Rectification of factual mistake in investment allowance computation allowed where substantive tax relief was otherwise established.

A factual mistake in the claim figure for investment allowance could be corrected in rectification proceedings where substantive entitlement was already established. The Tribunal noted that the earlier order had proceeded on the same lower figure considered by the authorities, so there was no formal error on the original claim as filed; however, the admissible investment allowance on the machinery value was higher and the reserve condition had been satisfied. The rectification petition was therefore allowed, and the earlier order was modified to grant investment allowance at the correct amount.

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Issues: Whether the assessee's miscellaneous petition seeking rectification of the earlier order was maintainable and whether investment allowance should be corrected and allowed at Rs. 1,05,035 instead of Rs. 78,776.

Analysis: The same figure of Rs. 78,776 had been considered by the lower authorities and the Tribunal, so there was no formal error in the earlier order on the basis of the claim then made. However, the admissible investment allowance on the machinery value was Rs. 1,05,035, and the reserve condition had already been satisfied. The discrepancy arose from a factual mistake in the claim figure, which required correction.

Conclusion: The rectification petition was allowed, and investment allowance was directed to be allowed at Rs. 1,05,035 instead of Rs. 78,776.

Final Conclusion: The earlier order was modified to correct the factual mistake in the allowance computation and grant the full admissible investment allowance.

Ratio Decidendi: A factual mistake affecting the quantum of admissible tax relief can be corrected in rectification proceedings when the substantive entitlement is otherwise established.

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