Affirming the order of the Tribunal the Court held that the assessee had not been carrying on any manufacturing activity for the assessment year 2004-05, and the rental income received by the assessee for that year could not be treated as business income. In view of the finding, the disallowance of the expenditure on stores and spares by the Assessing Officer was correct. The omission of the Assessing Officer to make the addition while computing the total income was liable to be rectified. The order of rectification was valid On appeal Honourable Supreme Court affirmed the order of High Court. (AY.2004-05)
PTL Enterprises Ltd. v Dy. CIT (2022) 443 ITR 260 / 326 CTR 858 / 286 Taxman 564 / 214 DTR 233(SC) Editorial : Decision in PTL Enterprises Ltd. v. Dy.CIT (2021) 439 ITR 365 / (2022) 212 DTR 404 / 326 CTR 282 / 286 Taxman 169 (Ker.)(HC) affirmed.
S. 154 : Rectification of mistake-Expenditure on account of stores and spares-Omission to make addition in the assessment order-Income assessed as income from other sources and not as business income-Rectification is held to be valid. [S. 28(1), 37(1), 56]