2006 (3) TMI 678

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....ection 143(1)(a) of Income-tax Act." 3. The assessee submitted a return of income in time for the assessment year 1994-95, enclosing therewith a chart of carried forward business loss of Rs. 49,58,341, unabsorbed depreciation of Rs. 89,47,877 and unabsorbed investment allowance of Rs. 4,360 making a total of Rs. 1,39,10,578. In the computation of total income though the assessee stated the words "Add : Disallowables", which were Rs. 14,41,303, in the calculation portion a mistake came to be committed whereby instead of such amount being added, it came to be substracted. Therefore, the figure after addition which ought to have been Rs. 56,78,677 became Rs. 30,96,071. 4. In this regard, details are reproduced as below : Profit as per....

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.... Tools (P.) Ltd. v. Dy. CIT [1998] 229I ITR 682 (Mad); (iv) Sanctus Drugs Pharmaceuticals (P) Ltd. v. Union of India [1997] 225 ITR 252 (MP). 6. The learned Authorised Representative submitted that assessee was seeking justice against the above bona fide mistake which has come to visit us with a tax of Rs. 3,59,100 when a Rupee of tax was not kept back. From the provisions of sub-section (1A) it is absolutely clear that a case like this is not covered and with respect rightly and, our commonsense understanding tells us that when we were carrying forward the loss of Rs. 1.39 crores and on any view of the matter, when no tax was payable-mistake or no mistake-the question of additional tax cannot imaginably arise. Further it should be ap....

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....e judgment. In this regard contention of learned Departmental Representative are that the earlier decision of apex Court has been reversed. But at this juncture it is useful to refer the judgment of apex Court in the case of Dewan Daulat Rai Kapoor v. New Delhi Municipal Committee AIR 1980 SC 541 wherein it has been held that no doubt a reservation was expressed about the view taken in the case of Municipal Corpn., Indore v. Smt. Ratnaprabha AIR 1977 SC 308, but that cannot have the effect of overruling the decision of Smt. Ratanprabha (supra). However, for this purpose, we apply the principle of settled law that if two views are possible, the view favourable to the assessee should be adopted. CIT v. Vegetable Products Ltd. [1973] 88 ITR 19....