TaxTMI 
TaxTMI 
1999 (10) TMI 50
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....since its return was not signed by the person permitted to sign it in terms of section 140(c) of the Act, the return was non-est, and all proceedings taken on the basis of that return are void ab initio. Such notice was issued for the years 1988-89 and 1989-90. The assessee filed its objection stating that the return was filed by a person who was authorised to do so on the basis of a power of attorney. The Assessing Officer did not accept the assessee's contention and treated the return to be non est. The matter was carried in appeal before the commissioner of Income-tax (Appeals) (in short "the CIT(A)"). The Commissioner of Income-tax (Appeals) rejected the contention of the assessee that in view of section 292(b) a return cannot be questioned if it was in substance and effect in conformity with the intent and purpose of the Act. The assessee moved the Tribunal, who, by order dated April 4, 1995, accepted that section 292(b) of the Act took care of the situation and action under section 154 of the Act was not warranted. On being moved under section 256(1) of the Act, the reference, as indicated above, has been made. Learned counsel for the Revenue submitted that the return b....
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.... (a) may make an amendment under sub-section (1) of its own motion, and (b) shall make such amendment for rectifying any such mistake which has been brought to its notice by the assessee, and where the authority concerned is the Deputy Commissioner (Appeals) or the Commissioner (Appeals) by the Assessing Officer also. (3) An amendment, which has the effect of enhancing an assessment or reducing a refund or otherwise increasing the liability of the assessee, shall not be made under this section unless the authority concerned has given notice to the assessee of its intention so to do and has allowed the assessee a reasonable opportunity of being heard. (4) Where an amendment is made under this section, an order shall be passed in writing by the income-tax authority concerned. (5) 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 specifyi....
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.... Singhara Singh, AIR 1964 SC 358 and Chandra Kishore Jha v. Mahavir Prasad [1999] 7 JT 256 (SC)). Therefore, a return which is not signed and verified is non est. The Supreme Court in Commr. of Agrl. I. T. v. Sri Keshab Chandra Mandal [1950] 18 ITR 569 held that a return, in order to be valid, has to be signed by the individual himself. If a statute requires personal signature of a person, which includes a mark, the signature or the mark must be that of the person himself. But this follows only when it is permissible for the agent to sign the name of the principal. Signature includes a mark. The use of the words "himself" or "by him" or "under his hand" or "personally" indicate that even an authorised agent is precluded from signing on behalf of the principal. The proviso to section 140(c) of the Act states that where the company is not resident in India, the return may be signed and verified by a person who holds a valid power of attorney from such company to do so ; where the company is being wound up, whether under the orders of a court or otherwise, or where any person has been appointed as the receiver of any assets of the company, the return shall be signed and verified by th....
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....apparent on the face of the record", and the two provisions do not mean the same thing. The power of the officers mentioned in section 154 to correct "any mistake apparent from the record" is undoubtedly not more than that of the High Court to entertain a writ petition on the basis of an "error apparent on the face of the record" (see T S. Balaram, ITO v. Volkart Bros. [1971] 82 ITR 50 (SC)). "Mistake" is an ordinary word, but in taxation law, it has a special signification. It is not an arithmetical or clerical error alone that comes within its purview. A mistake which can be rectified must be a mistake from the record. It may be a mistake either of law or of fact (see M. K. Venkatachalam, ITO v. Bombay Dyeing and Mfg. Co. Ltd. [1958] 34 ITR 143 (SC) and ITO v. Asok Textiles Ltd. [1961] 41 ITR 732 (SC)). A mistake apparent on the record must be an obvious and patent mistake and not something which can be established by a long drawn process of reasoning on points on which there may be conceivably two opinions. A decision on a debatable point of law is not a mistake apparent from the record (see Satyanarayan Laxminarayan Hedge's case, AIR 1960 SC 137). If a statutory provision is ca....