Law: Income Tax Act, 1961

Section: 154

Income-tax----Revision---Commission---Jurisdiction---Rectification of mistakes--¬Original order rectified--- Original order ceased to exist after such rectification---Revision of original order after date of rectification was not valid---Subsequent cancellation of order of rectification would not validate order of revision---Indian Income Tax Act, 1961, Ss. 154 &.263. The original assessment in the case of the assessee for the assessment year 1979-80, was completed on March 30, 1982. This order was rectified under section 154 of the Income Tax Act, 1961, on May 6, 1983. The original assessment was held erroneous and prejudicial and proceedings under section 263 of the Income Tax Act were initiated by the Commissioner of Income-tax on March 2, 1984. Subsequently, however, the order of rectification was cancelled in appeal on January 30, 1985. On a reference of the question whether the Commissioner had jurisdiction to revise: Held, that on March 2, 1984, when the power of revision was exercised the order, dated March 30, 1982, was not in existence. On that day, there was no order which could have been considered as erroneous and prejudicial to the interests of the Revenue because that order was superseded by the order of rectification on May 6, 1983. The order of revision was not valid. The subsequent cancellation of the order of rectification would not validate the order of revision. Commissioner of Police v. Gordhandas Bhanji AIR 1952 SC 16 and Mohinder Singh Gill v. Chief Election Commissioner AIR 1978 SC 851 ref. JUDGMENT A.R. TIWARI, J. ---At the instance of the assessee, the Tribunal has stated the case and referred the undernoted question of law under section 256(1) of the Income Tax Act, 1961 (for, short, "the Act"), on an application registered as R.A. No. 148/(Ind) of 1986 arising out of the order passed by the Tribunal on July 29, 1986, in I.T.A. No.530/(Ind) of 1986 for our opinion: "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was justified in holding that the Commissioner of Income-tax had jurisdiction to initiate proceedings under section 263 of the Income Tax Act and to revise the original…

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