| Case ID |
e18a53d4-0b2d-44b5-a3e7-15b02732c07c |
| Body |
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| Case Number |
Tax Cases Nos.377 and 378 of 1984 |
| Decision Date |
Feb 12, 1997 |
| Hearing Date |
|
| Decision |
The Madras High Court held that the order of rectification passed by the Income-tax Officer was within the period of limitation as per section 154 of the Income Tax Act, 1961. The Court clarified that the term 'order' in section 154 does not necessarily refer to the original order but can include any order, including amended or rectified ones. The original assessment orders for the years 1972-73 and 1974-75 were passed on December 17, 1974, and contained mistakes regarding deductions. The revised assessment orders were made on August 14, 1978, rectifying these mistakes. The rectification order dated December 13, 1979, was deemed timely as it was within four years of the revised order. Therefore, the High Court affirmed the Appellate Tribunal's interpretation and decision. |
| Summary |
In the landmark case of Salem Cooperative Spg. Mills Ltd vs. Commissioner of Income Tax, the Madras High Court addressed significant issues concerning the rectification of mistakes under Section 154 of the Income Tax Act, 1961. The case revolved around the interpretation of the term 'order' in the context of the limitation period for rectifications. The Court determined that the word 'order' is not limited to the original assessment order, allowing for any subsequent orders, including amended or rectified orders. This ruling is crucial for taxpayers and legal practitioners as it clarifies the procedural nuances of tax law and emphasizes the importance of timely rectifications. The decision is expected to guide future interpretations and applications of tax law, making it a pivotal reference point for similar cases. |
| Court |
Madras High Court
|
| Entities Involved |
COMMISSIONER OF Income Tax,
SALEM COOPERATIVE SPG. MILLS LTD
|
| Judges |
A. ABDUL HADI,
N. V. BALASUBRAMANIAN
|
| Lawyers |
P.P.S. Janarthana Raja,
C.V. Rajan
|
| Petitioners |
SALEM COOPERATIVE SPG. MILLS LTD
|
| Respondents |
COMMISSIONER OF Income Tax
|
| Citations |
1999 SLD 506,
1999 PTD 3419,
(1998) 230 ITR 139
|
| Other Citations |
Hind Wire Industries Ltd. v. CIT (1995) 212 ITR 639 (SC)
|
| Laws Involved |
Income Tax Act, 1961
|
| Sections |
154
|