https://www.taxtmi.com/caselaws?id=166487 Section 35(10) of the Income-tax Act, 1922 was construed to apply to rebates already granted in completed assessments for earlier years where the company later used the relevant undistributed profits to declare dividends. The provision created a deeming fiction allowing the earlier rebate to be treated as wrongly allowed and recomputed as if rectifying a mistake apparent from the record, while leaving the original assessment of income otherwise undisturbed. Finality of the earlier assessments before 1 April 1956 did not prevent its operation, because the section expressly contemplated prior rebates being affected by later dividend declarations. The officer was therefore empowered to recall the rebate and make the recomputation. en-us Thu, 06 Nov 1958 00:00:00 +0530 Mon, 29 Sep 2014 10:55:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=166487 Section 35(10) of the Income-tax Act, 1922 was construed to apply to rebates already granted in completed assessments for earlier years where the company later used the relevant undistributed profits to declare dividends. The provision created a deeming fiction allowing the earlier rebate to be treated as wrongly allowed and recomputed as if rectifying a mistake apparent from the record, while leaving the original assessment of income otherwise undisturbed. Finality of the earlier assessments before 1 April 1956 did not prevent its operation, because the section expressly contemplated prior rebates being affected by later dividend declarations. The officer was therefore empowered to recall the rebate and make the recomputation. Case-Laws Income Tax Thu, 06 Nov 1958 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=166487