| Case ID |
42cb4c61-54db-432a-a547-7e996bd895cb |
| Body |
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| Case Number |
Income tax Reference No. 233 of 1977 |
| Decision Date |
Mar 05, 1982 |
| Hearing Date |
|
| Decision |
The Allahabad High Court upheld the Tribunal's decision that the Income Tax Officer (ITO) was not competent to rectify a calculation in Form ITNS 150, as it was not an order but merely a calculation meant for departmental purposes. The Court emphasized that mistakes that are rectifiable under Section 154 must be apparent from the record and must relate to orders of assessment or refund, which was not the case here. The Court also clarified that charging interest under Section 139(8)(a) is not automatic and requires a prior order from the ITO, which was not provided in this instance. Therefore, the appeal by the department was dismissed, affirming the Tribunal's ruling in favor of the assessee. |
| Summary |
This case revolves around the issue of rectification of mistakes as per the Income Tax Act, 1961. The Allahabad High Court reviewed the Tribunal's decision regarding the rectification of a mistake made by the Income Tax Officer in calculating interest on late tax return submissions for the Himalaya Drug Company. The key legal questions addressed included the authority of the ITO to rectify mistakes and the nature of Form ITNS 150. The Court clarified that only mistakes that are apparent from the record and relate to formal assessment orders can be rectified under Section 154. The ruling reiterated that the ITO must provide a basis for any interest charged, which was absent in this case, leading to the dismissal of the revenue's appeal. This case highlights the importance of clear procedural compliance in tax assessments and the limits of the ITO's rectification powers under the Income Tax Act. |
| Court |
Allahabad High Court
|
| Entities Involved |
|
| Judges |
K. N. SETH,
R. R. RASTOGI
|
| Lawyers |
M. Katju,
R. K. Gulati
|
| Petitioners |
COMMISSIONER OF INCOME TAX
|
| Respondents |
HIMALAYA DRUG Co
|
| Citations |
1982 SLD 78,
1982 PTD 394,
(1982) 46 TAX 182
|
| Other Citations |
Not available
|
| Laws Involved |
Income Tax Act, 1961
|
| Sections |
154,
139(1)(b)(iii),
139(8)(a),
164
|