1969 (10) TMI 2

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....The petitions relate to orders made in common for the assessment years 1957-58 to 1959-60. They were made under section 35 of the Indian Income-tax Act, 1922, to rectify the earlier orders. For instance, in respect of the assessment for the year 1958-59, as a result of rectification, a sum of Rs. 30,347 was added to the taxable total income. In respect of the other two years too, additions were ma....

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....oviding service connections, etc. It is not clear from the orders of the Income-tax Officer whether he considered only a portion of or the whole of the establishment expenses as relating to capital expenditure not entitled to deduction. The Income-tax Officer called upon the petitioner by a notice to show cause why the earlier assessment orders should not be rectified under section 35. In answer, ....

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....stablishment expenses, which had been given deduction of, included wholly or partly capital expenditure referable to the capital recoveries. On that view, we consider that the Income-tax Officer acted within his power under section 35. The last contention for the petitioner is that the order of the Income-tax Officer does not ex facie show whether and, if so, how the entire establishment charge....

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....int. Unfortunately there are no materials also before us with reference to which we can check up the appropriateness of the additions made by the Income-tax Officer. In the above circumstances, the petition are allowed and the orders of the Income-tax Officer are quashed. He will be at liberty to dispose of the question of rectification by fresh orders, after giving opportunity to the petitione....