2015 (4) TMI 408

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....ncome Tax Act, 1961 the assessee is entitled to include a sum of Rs. 91,32,404, the amount actually contributed in the assessment year 1992-93 to the Cooperative Education Fund under Section 61(1)(b) of the Multi State Cooperative Societies Act, 1984? 3. Whether the Tribunal was justified in holding that the contribution to the Cooperative Education Fund was not a cess falling within the purview of Section 43B of the Income Tax Act, 1961?" 2. The appellant is aggrieved by the order of the Income Tax Appellate Tribunal (ITAT) dated 29.08.2001. The ITAT allowed the Revenue's appeal against an order of the CIT(A). 3. The brief facts are that the assessee had inter alia claimed business expenditure under Section 43B of the Income Tax Act, 19....

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.... 4. The assessee contends that this notice was received much later - on 30.05.1995 - and that before it could be taken into consideration, the order withdrawing/rectifying the previous order dated 12.05.1995 was passed on 31.05.1995. The rectification order under Sections 154/250 reads as follows: "Order u/s.154/250 The Ld. CIT(A) has passed an order u/s 250 of the IT Act on 29.03.1995 in the case of the assessee for the Assessment Year 1992-1993 in Appeal No.694/94-95. Amongst other points, the Ld. CIT(A) has directed in his order to verify the claim of the assessee regarding deduction u/s 80-I on Rs. 91,32,404/- which was paid to Cooperative Education Fund u/s 61 (1)(b) of the Multi State Cooperative Education Fund Act, 1984 after givin....

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....sing officer was not right in not allowing full claim of deduction u/s 80 I on the total income of this year and excluding an amount of Rs. 91,32,404/-. It must be noted that cess on education has been allowed this year but it pertains to A.Y. 1990-1991 and cannot go in reducing the total income. In view of this position, the assessing officer was wrong in passing the rectification order u/s 154, this order is hereby quashed and the assessee is entitled to deduction u/s 80I of an amount of Rs. 18,26,481/-." 6. The revenue's appeal was accepted by the impugned order. The ITAT was of the opinion that the AO correctly rectified the order of 12.05.1995 on 31.05.1995 since on the merits, the payments to the Cooperative Education Funds were not ....

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....ht to be utilized. This Court affirmed the findings of the ITAT which had then held that in view of the decision of the Supreme Court in T.S. Balaram, ITO v. Volcart Brothers 1971 (82) ITR 50 (SC), it is only obvious and patent mistake and which cannot be established by long process of reasoning that fall within the jurisdiction to rectify. This Court had observed as follows: "The only issue which arose for consideration before the Tribunal was whether a part of the relief granted to the respondent/assessee under section 80-I of the Act could be withdrawn by taking recourse of section 154 of the Act. The Tribunal, by placing reliance on various decisions of the apex court and of this court has come to the conclusion, and rightly so, that s....