1980 (10) TMI 58

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nd, therefore, the orders passed by the Income-tax Officer under section 154 were not justified ? " The assessment years under consideration are six years, 1963-64 to 1968-69. The assessee before us is a private limited company and the assessee acquired certain machineries under what was called hire purchase agreement from the National Small Scale Industries Corporation. In the original assessment orders, depreciation and development rebate had been allowed on these assets acquired under the hire purchase agreement. Thereafter, proceedings were started for rectification under s. 154 proposing to withdraw the depreciation and development rebate allowed to the assessee in these six years, and the ground was that since the assesseecompany w....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ement, the said plant and machinery continued to vest in the Corporation and the title did not pass to the assessee. Consequently, the revenue contended that the assessee was not the owner of the plant and machinery during the relevant previous years and was not entitled to the allowance of development rebate and depreciation allowance for the concerned years and the grant of such allowance for the concerned years was, therefore, a mistake apparent on the face of the record and the ITO was right in acting under s. 154 of the I.T. Act and rectifying that mistake by withdrawing the allowance by the impugned orders. The Tribunal, however, did not accept this contention of the revenue and ultimately held that the mistake, if any, in the origina....