2010 (2) TMI 372

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....y the Assessing Officer which has been confirmed by the Commissioner of Income-tax (Appeals) and further affirmed by the Income-tax Appellate Tribunal, Bangalore, in I. T. A. No. 218/Bang/02 dated January 28, 2004. 3. The facts leading to this case are as hereunder : The appellant-company is a leading chit fund company. The dispute is in regard to the assessment year 1998-99. The assessee filed its return of income for the assessment year 1998-99 on November 13, 1998, declaring an amount of Rs. 28,77,633. The return was processed under section 143(1) of the Act and ordered for refund of Rs. 19,52,528 (including interest of Rs.1,61,168) and the amount was adjusted towards the arrears of tax payable by the assessee for the earlier asses....

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.... appeal, the Commissioner of Income-tax (Appeals) relied upon the judgment of this court in Mysore Cement Ltd. v. Deputy CCT passed in W. P. Nos. 16891 to 16895/1993. Being aggrieved by the concurrent findings, the assessee filed an appeal before the Income-tax Appellate Tribunal, Bangalore Bench, which appeal also came to be dismissed relying upon the judgment in Mysore Cement Ltd. v. Deputy CCT. Being aggrieved by these orders, the present appeal is filed. 5. The appeal was admitted on September 30, 2004 to consider the following substantial questions of law : "Whether the Appellate Tribunal was right in holding that the order of rectification passed under section 154 of the Act for the assessment year 1998-99 levying interest for t....

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.... by the officer, it was always open for him to pass an order of rectification. Therefore, he requests the court to dismiss the appeal and he mainly relied upon the amendment brought into section 234B retrospectively. 8. Having heard the counsel for the parties. What is to be considered by us in this appeal is whether the order of assessment passed by the Assessing Officer at the first instance was passed relying upon the judgment of the Supreme Court. If he has passed the order of assessment based on the judgment of Supreme Court, is it open for an Assessing Officer to rectify the order relying upon the subsequent amendment to the provisions of section 234B ? 9. It is not in dispute, the order of assessment was passed by the Assessing....