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Issues: Challenge to orders of Income-tax Appellate Tribunal for assessment year 1982-83, rectification of mistake in valuation of land, legality of refusal to rectify apparent mistake.
Analysis: The judgment concerns a writ petition challenging orders of the Income-tax Appellate Tribunal for the assessment year 1982-83 and seeking rectification of a valuation mistake. The petitioner sold agricultural land in plots from 1976-77 to 1982-83, initially treated as business activity by the Income-tax Officer. The Tribunal directed the adoption of land cost at Rs. 17 per sq. yard for earlier years. However, for 1982-83, the Officer valued the land at Rs. 12 per sq. yard, contrary to the Tribunal's direction. The petitioner sought rectification, which was rejected citing finality of the assessment order. The Tribunal's subsequent rectification for earlier years was used to argue for rectification in 1982-83. The main issue was whether the refusal to rectify the valuation mistake for 1982-83 was legal. The petitioner argued that the refusal to rectify the mistake was illegal as it was apparent on the face of the record. The Revenue contended that the absence of an appeal against the original assessment order rendered the rectification application invalid. They also argued that a subsequent Tribunal decision alone does not constitute a mistake under the Income-tax Act. Case law was cited to support the contention that rectification is distinct from review, emphasizing the need for statutory authority for review. The court analyzed relevant case law, including CIT v. Jagabandhu Roul, ITO v. ITAT, Narain Chemical Industries v. STO, and Ram Singh and Sons Engineering Works v. State of U. P., to determine the scope of rectification under the Income-tax Act. It was established that rectification can be made for mistakes apparent on the face of the record, even if subsequent to the original order. The court highlighted that rectification in this case was sought for the same assessee and land, with a precedent of rectification for earlier years under section 254(2). The argument that no appeal against the original order precludes rectification was dismissed as rectification is not contingent on finality of the original order for apparent errors. Ultimately, the court found in favor of the petitioner, ruling that the refusal to rectify the valuation mistake for 1982-83 was unjustified. The impugned order was set aside, directing the Tribunal to reconsider the rectification application in light of the judgment. The court emphasized the need to correct apparent mistakes in valuation to ensure consistency and fairness in tax assessments.
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