Law:

Section:

Section 154 of the Income-tax Act, 1961 [Corresponding to section 35 of the Indian Income-tax Act, 1922] - Rectification of mistakes - Apparent from records - Assessment years 1960-61 and 1961-62 - Assessee company filed its return of income before commencement of new Act but assessment was completed after commencement of new Act - Subsequently, ITO issued a notice under section 154 and rectified assessment under said section - Whether rectification order could be passed only under section 35 of old Act and not under section 154 of new Act - Whether mere fact that notice was issued under section 154 of new Act - Held, yes - Whether instead of section 35 of old Act would take away Income-tax Officer's jurisdiction to rectify assessment - Held, yes FACTS For the assessment years 1960-61 and 1961-62, assessee company filed its returns of income prior to the commencement of the 1961Act. The assessments were, however, completed after commencement of the 1961 Act. Subsequently, notices were issued by the ITO under section 154 of the 1961 Act for the rectification of the assessments and the assessments were thereafter rectified. On appeal, the assessee contended that for the assessment years in question, the rectification, if any, could be made only under section 35 of the old Act, and not under section 154 of the New Act. The AAC accepted the assessee's case; and held that the provision of section 154 of the 1961 Act were not applicable for the purposes of rectification in respect of the assessment years in question. On further appeal, the Tribunal upheld the order of the AAC. On reference : HELD It could not be said that the mere fact that the notice issued under section 154 of the new Act instead of section 35 of the old Act would take away the ITO's jurisdiction to rectify the assessment. The validity of the notice will depend upon its substance and it was not disputed that the notice issued in instant case by the ITO prior to the rectification contained all the essential requirements mentioned in section 35 of the old Act. In view of the language of section 297(2)(a) of the new Act, the rectification order could be passed only under section 35 of the old Act and…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492