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Section 154 of the Income-tax Act, 1961 - Rectification of mistake - Apparent from records - Assessment year 1979-80 - Assessing Officer after framing assessment of assessee-company on 25-3-1982, rectified same under section 154 on 31-3-1986 - On appeal, Tribunal accepting contention of assessee that order of rectification was barred by limitation set aside rectification order - Whether in view of amendment carried out in section 154(7) by Taxation Laws (Amendment) Act, 1984 w.e.f. 1-10-1984 rectification order passed by assessing authority on 31-3-1986 was well within period of limitation - Held, yes FACTS The Assessing Officer, after framing assessee-company's assessment on 25-3-1982 for the assessment year 1979-80, rectified the same under section 154 on 31-3-1986. On appeal, the Commissioner (Appeals) confirmed the impugned action. On second appeal, the Tribunal accepting the assessee's contention that the order of rectification was barred by limitation, set aside the order of the Commissioner (Appeals.). On reference : HELD The Assessing Officer under the provisions of section 154 before the amendment carried out by Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984, was permitted to amend an order within the period of four years from the date of the order sought to be amended. As against that by virtue of the amended provision of section 154(7), the period of limitation within which an order could be rectified stood extended inasmuch as the period of four years had to be computed from end of financial year in which the order sought to be amended was passed. [Para 7] The assessment order was dated 25-3-1982. The original period of limitation under the unamended provision would have expired on 24-3-1986. However, by virtue of the amendment carried out by the Taxation Laws (Amendment) Act, 1984, the said period stood extended up to 31-3-1986 and the rectification order had admittedly been made on 31-3-1986. [Para 8] In the light of the settled position of law in CIT v. Royal Motor Car Co. [1977] 107 ITR 753 (Guj.) and CIT v. Balabhai & Co. [1980]122 ITR 301 (Guj.) the amendment of section 154(7) which came into effect from 1-10-1984, could be invoked…

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