Law:

Section:

Section 155(3) of the Income-tax Act, 1961 (Corresponding to section 35(6) of the Indian Income-tax Act, 1922) - Rectification of mistakes - Other amendments - Assessment year 1947-48 - ITO taking value of high denomination notes encashed by assessee as income from business, allowed deductions in respect of excess profit tax as well as business profits tax - Subsequently, Tribunal held that aforesaid income in hands of assessee was from undisclosed sources and not from business, thus, no deduction was allowable in respect of excess profits tax and business profits tax - ITO, in view of aforesaid order, rectified its earlier order under section 155(3) of 1961 Act and withdrew deductions allowed regarding excess profits tax and business profits tax - On appeals, AAC held that amount in question had already been subjected to tax under settlement order and matter had become conclusive and final - Consequently, AAC held that rectification order passed by ITO was not correct - On revenue's appeal, Tribunal came to finding that order of ITO had to be treated as an order under section 35(6) of 1922 Act and as no appeal was provided against an order under section 35, appeal before AAC was incompetent, and therefore, order of AAC had to be set aside -Whether Tribunal was correct in holding that no competent appeal lay before AAC against rectification order of ITO - Held, yes - Whether, therefore, Tribunal was justified in setting aside order of AAC - Held, yes FACTS The assessment was made under section 23(3) of the 1922 Act on 14-6-1949. This order was rectified in 1950 and the excess profits tax as well as the business profits tax was allowed as a deduction as provided under section 12(1) of the Excess Profits Tax Act, 1940, and section 10 of the Business Profits Tax Act, 1947. Later on, the Income-tax Officer found that the Tribunal, by its order dated 30-11-1970, decided that the income of Rs. 1,27,000 in the hands of the deceased assessee, was from undisclosed sources and not from business and so no excess profits tax and business profits tax was leviable on that income. As a consequence of said order of the Tribunal, the Income-tax Officer proceeded to rectify 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