TaxTMI 
TaxTMI 
2004 (10) TMI 79
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....CIT(A) to hold that the question of allowing expenses against the amount incentive bonus received by a Development Officer of the LIC of India was a highly debatable issue and outside the purview of section 154?" The assessee, an individual, is a Development Officer with the Life Insurance Corporation of India. He filed his income-tax return for the assessment year 1992-93 declaring total income of Rs. 65,479. The case of the assessee was processed under section 143(1)(a) of the Act and his income was computed at Rs. 71,970. The assessee filed an application for rectification under section 154 with a prayer that additions/disallowance, if any, be deleted. The Assessing Officer also issued notice under section 154 of the Act for adding in....
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....e so far as the authorities under the jurisdictional High Court are concerned. Shri Bindal then argued that the Assessing Officer did not commit any error by invoking the provisions of section 154 of the Act for the purpose of making additions in the income of the assessee. In support of this argument, he placed reliance on CIT v. Hukam Chand Jain [2003] 262 ITR 373 (Raj). We have considered the submissions of learned counsel for the Revenue, but have not felt inclined to accept the same. Section 154 of the Act, which provides for rectification of mistakes apparent from the record, reads as under: "154. (1) With a view to rectifying any mistake apparent from the record an income-tax authority referred to in section 116 may,- (a) am....
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....Subject to the provisions of section 241, where any such amendment has the effect of reducing the assessment, the Assessing Officer shall make any refund which may be due to such assessee. (6) Where any such amendment has the effect of enhancing the assessment or reducing a refund already made, the Assessing Officer shall serve on the assessee a notice of demand in the prescribed form specifying the sum payable, and such notice of demand shall be deemed to be issued under section 156 and the provisions of this Act shall apply accordingly. (7) Save as otherwise provided in section 155 or sub-section (4) of section 186 no amendment under this section shall be made after the expiry of four years from the end of the financial year in whic....
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.... to establish which a long-drawn process of argument or reasoning is to be advanced." In the present case, the intimation under section 143(1)(a) of the Act was dated May 31, 1993, and order under section 154 was passed on November 17, 1993. The Tribunal dismissed the appeal of the Revenue on September 24, 1997. The decision by this court in B.M. Partnar's case [1999] 235 ITR 679 was rendered on October 27, 1998, sub-section (7) of section 154 prescribes limitation of four years for initiation of action for rectification of a mistake. Therefore, the action for rectification could have been taken by the Assessing Officer up to March 31, 1998, on the basis of the judgment of the jurisdictional court. However, the fact of the matter is that....