1988 (7) TMI 23

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....ner, West Bengal-III, the following question of law has been referred to this court under section 256 (2) of the Income-tax Act, 1961, for the assessment year 1965-66 : "Whether, on the facts and in the circumstances of the case and having regard to Explanation 1 to rule 2 of the Second Schedule to the Companies (Profits) Surtax Act, 1964, there was a mistake apparent from the record within the....

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....the Income-tax Officer who passed the original assessment. Following the decision of the Supreme Court in the case of T. S. Balaram, ITO v. Volkart Bros. [1971] 82 ITR 50, he cancelled the order of the Income-tax Officer made under section 13. In the appeal before the Tribunal, the Departmental representative submitted that in the original assessment, the sum of Rs. 18 lakhs was wrongly include....

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....ount should not have been included for the purpose of capital computation. The contention of the assessee was that the bonus shares amounting to Rs. 18 lakhs were issued by writing up the fixed assets in 1948 and in 1961 those assets were written down from the general reserve and other reserves and the result was that the reserves came down by the said amount of Rs. 18 lakhs. Thus, materially, ....