2016 (11) TMI 1632

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....ssessee has come up in appeal. Mr.Khaitan, learned senior advocate, appearing for the assessee-appellant has raised the following question of law. "Whether the Tribunal was justified in law in upholding the rejection of the appellant's rectification application ?" The undisputed facts are as follows: The assessment order was passed on 18th December, 2007 disallowing payment of a sum of Rs. 1,12,73,815/- on account of hire charges to the tanker owners, whose services were pressed for transportation of oil by the assessee, on the ground that the latter had not deducted tax at source. To be precise, the disallowance was under section 40a(ia) of the Income Tax Act. An application for rectification was made on 12th December, 20....

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....uch assessment is limited to bringing to tax the income which has escaped assessment made originally inter alia u/s 143(3) and the theory of doctrine of merger does not apply in the case of assessment made u/s143(3) originally and the assessment made subsequently u/s143(3)/147. Both these assessments stand independently on their own footing. We therefore find ourselves in agreement with ld.CIT(A) that the application filed by the assessee for rectification u/s 154 was barred by limitation and the action of AO in rejecting the same was justified on this ground also." Mr.Bhattacharyya, learned advocate, appearing for the revenue taking inspiration from the impugned order submitted that the order of the assessing officer passed on 18th Dece....

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....e. There is also a circular and/or administrative instruction for guidance of Income-tax Officers on matters pertaining to assessment issued vide Circular No.14(XL-35), dated 11-4-1955, wherein the following guidelines were provided :                 "(3)        Officers of the Department must not take advantage of ignorance of an assessee as to his rights. It is one of their duties to assist a taxpayer in every reasonable way, particularly in the matter of claiming and securing reliefs and in this regard the Officers should take the initiative in guiding a taxpayer where proceedings or other particulars before them indi....