1997 (2) TMI 62

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....f the case, the Tribunal was right in holding that the mistake sought to be rectified by the Income-tax Officer under section 154 of the Income-tax Act was not an apparent one in the case of the assessee for the assessment years 1966-67 and 1967-68?" In the case of this assessee, the assessment for the assessment year 1966-67 was reopened under section 147(b) of the Act and the revised assessment was made. Subsequently that order was rectified for granting further depreciation allowance for certain assets. Later on, the Income-tax Officer initiated action under section 154 of the Act, on the ground that there was a mistake in the regular assessment itself in the computation of capital for the purpose of grant of relief under section 84 rea....

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....he provisions of section 154 of the Act would not apply to the facts of this case. Accordingly, the Revenue's appeal was dismissed. Before us, learned standing counsel appearing for the Department, relying upon rule 19(3) and sub-clause (a) of the proviso thereunder, submitted that the tax under section 140A would become due when the payment first became due. According to learned standing counsel even though under section 140A the assessee shall pay the tax so payable within 30 days of furnishing the return, the tax would become due on the day when the payment first became due. Learned standing counsel submitted that there cannot be any debate or long drawn process of reasoning involved in understanding when the tax under section 140A woul....

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....n 30 days from the date of filing the return under section 139 it would not mean that the tax would become due first after the expiry of 30 days. For the purpose of granting relief under section 84 of the Act, the Income-tax Officer in the original assessment failed to deduct the self-assessment tax which was due on the date when the returns were filed. Hence, he invoked the provisions of section 154 of the Act and notified the mistake and deducted the tax due as a debt in the capital base for the purpose of granting relief under section 84 of the Act. The point for consideration is, whether section 154 of the Act would apply to the facts of this case. When there is a mistake apparent from the records, section 154 of the Act would apply.....