Law:

Section:

Section 154 of the Income-tax Act, 1961 - Rectification of mistakes - Apparent from record - Assessment year 1964-65 - Whether where ITO exercised his jurisdiction under section 154 and rectified order of assessment, his successor ITO could not sit in appeal over that order and cancel same by exercising powers again under section 154 - Held, yes FACTS While completing the assessment of the assessee for the assessment year 1964-65, the ITO charged interest under section 139. The assessee thereupon filed an application under section 154 for rectifying that order by waiving the interest under section 139(8). The said application was accepted by the ITO by his order dated 10-12-1970, and the interest charged under section 139 was cancelled. The ITO (Admn.) then issued a show-cause notice under section 154 showing his intention to cancel the order passed by the ITO, on 10-12-1970. The assessee filed a reply supporting the order dated 10-12-1970, but the ITO (Admn.), was not satisfied with the reply and held that the order passed on 10-12-1970, was erroneous and without jurisdiction. He, accordingly, restored the original order charging interest under section 139. On appeal, the AAC held that the ITO (Admn.) could not have exercised powers under section 154 in setting aside the order dated 10-12-1970. On appeal, by the revenue, the Tribunal upheld the order of the AAC. On reference : HELD When the ITO exercised his jurisdiction under section 154 and rectified the order of assessment, his successor ITO could not have sat in appeal over that order and cancelled the same by exercising powers again under section 154. Section 154 provides for rectification of a mistake apparent on the record. Where the ITO had found that interest was liable to be waived but the question of waiver had not been considered in the assessment order, and, therefore, rectified the earlier order of assessment, his order could not be said to be suffering from any error apparent on the record and, therefore, the ITO (Admn.) could not have rectified that order by saying that the earlier order passed by the ITO, was erroneous or without jurisdiction. The ITO had certainly a discretion to waive the…

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