Section 154 rectification cannot convert house property income into a loss where the provision allows reduction only to nil.

The Tribunal held that, for a newly constructed property under the second proviso to section 23(1), the house property computation can be reduced only up to nil and cannot be converted into a negative loss figure. Because the provision was capable of more than one view, the issue could not be treated as a mistake apparent from the record for section 154 rectification. The rectification order was therefore unsustainable, and cancellation of the section 154 order in favour of the assessee was upheld.

---

---

Issues: Whether the Assessing Officer could invoke rectification under section 154 to substitute a loss figure with nil income in computing house property income for a newly constructed property under the second proviso to section 23(1).

Analysis: The Tribunal held that the proviso governing newly constructed property authorises reduction of the income only up to zero and does not permit conversion of the computation into a negative figure. Since the applicability of the provision admitted more than one possible view, the matter could not be treated as a mistake apparent from the record for the purposes of rectification.

Conclusion: The rectification order was not sustainable and the cancellation of the order under section 154 was upheld in favour of the assessee.

---