Law:

Section:

JUDGMENT B.K. Mehta, J.-This is a petition under article 226 of the Constitution of India by the Ahmedabad Sarangpur Mills Company Ltd., a company incorporated under the Companies Act having its registered office at Ahmedabad, challenging the notices and the orders issued under section 154 of the Income-tax Act, 1961, by the respondent herein seeking to rectify the original orders of assessment in respect of assessment years 1961-62 to 1963-64, and also the notice of demand for the year 1963-64, which have been annexed collectively at exhibits E, G and H, respectively, to the petition. Shortly stated the facts leading to this petition are as under : The petitioner-company is a public limited company carrying on its business of manufacture of cloth at Ahmedabad. The petitioner-company was assessed for the assessment years 1961-62 to 1963-64 by the predecessor-in-office of the respondent herein. The assessment order for assessment year 1961-62 was passed on December 26, 1962, for assessment year 1962-63, it was passed on March 25, 1966, and for assessment year 1963-64, it was passed on July 5, 1966. It appears that the respondent herein who was the Income-tax Officer at the relevant time having jurisdiction in the matter of assessment of the petitioner-company was of the opinion that a mistake had crept in in computing loss for assessment year 1954-55 and effect of the loss would be arising for the first time in 1961-62 as there was positive income in that year. The respondent herein, therefore, wanted to rectify the assessment orders for assessment years 1961-62, 1962-63 and 1963-64; the reasons for rectification for all these assessment orders were identical. The respondent, therefore, issued notices under section 154 of the Income-tax Act, 1961, on February 3, 1968. The petitioner-company resisted the rectification proceedings sought to be initiated, contending, inter alia, that the proposed rectification would be beyond limitation as prescribed under the relevant sections. It should be noted that though the notices for initiation of rectification proceedings were issued under section 154 of the 1961 Act, for assessment year 1961-62 it was virtually a notice…

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