Law: Income Tax Act, 1961

Section: 154

Income-tax----Rectification of mistakes---Limitation---Meaning of "order", in S. 154--- Order does not refer to original order---Original assessment order passed on 17-12-1974 and revised assessment order passed on 14-8-1978---Order of rectification passed on 13-12-1979 was not barred by limitation---Indian Income Tax Act, 1961, S.154. The word "order" in the expression "from the date of the order sought to be amended" in section 154 of the Income Tax Act, 1961, is not qualified in any way. It does not necessarily mean the original order; it could be any order, including an amended or rectified order: Held, on the facts, that the orders of assessment for both the assessment years 1972-73 and 1974-75 were passed on December 17. 1974, and the original assessment orders contained certain mistakes on the question whether the deduction should be carried forward from the earlier years. There was a subsequent order rectifying the assessment orders. The revised assessment orders were made on August 14, 1978, and in the revised assessment orders dated August 14, 1978, the same mistakes, which had occurred in the original assessment order, were found and the Income-tax Officer therefore, rectified this mistake by his order, dated December 13, for both the years. For the purpose of computing the limitation period under section 154 of the Act to rectify the mistake, the order, dated August 14, 1978, should be taken into account. The order of rectification passed on December 13, 1979, was within four years from the date of the order passed on August 14, 1978, prescribed under section 154 of the Act. It was not barred by limitation. Hind Wire Industries Ltd. v. CIT (1995) 212 ITR 639 (SC) rel. JUDGMENT N. V. BALASUBRAMANIAN, J.---At the instance of the assessee, the Appellate Tribunal has referred the following common question of law for the assessment years 1972-73 and 1974-75 for the opinion of this Court: "Whether, on the facts and in the circumstances of the case an assessment order made to give effect to an appellate order completely supersedes the original assessment order and a rectification of a mistake which appeared in both the assessment orders could be taken as a…

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