Rectification for mistake apparent from record fails where the tax computation issue is debatable and reasonably arguable.

Rectification under section 154 is limited to a manifest and patent mistake apparent from the record; a debatable issue of law cannot be corrected summarily. On the facts discussed, the computation under section 49D(3) depended on the arguable distinction between relief and abatement under the double taxation arrangement, so the alleged error was not self-evident. Section 154 was therefore inapplicable, and the proposed rectification could not be sustained. The reference was answered in favour of the assessee.

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Issues: (i) Whether the Income-tax Officer had committed a glaring and obvious mistake of law in granting relief under section 49D(3), so as to permit rectification under section 154 of the Income-tax Act, 1961.

Issue (i): Whether the Income-tax Officer had committed a glaring and obvious mistake of law in granting relief under section 49D(3), so as to permit rectification under section 154 of the Income-tax Act, 1961.

Analysis: Rectification is confined to a mistake that is clear, self-evident, and apparent from the record. Where the point turns on a debatable construction of the relevant provisions and the competing views are reasonably arguable, the error cannot be treated as apparent on the face of the record. On the materials, the distinction between relief and abatement under the double taxation arrangement and its effect on the computation under section 49D(3) admitted of argument and was not an obvious error capable of summary correction.

Conclusion: The Income-tax Officer had not committed a mistake apparent from the record, and section 154 was not applicable. The answer was in favour of the assessee.

Final Conclusion: The reference was answered in favour of the assessee, and the proposed rectification was held to be beyond the scope of section 154.

Ratio Decidendi: Rectification is permissible only for a manifest and patent error; a debatable legal position cannot be corrected as a mistake apparent from the record.

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