1993 (3) TMI 156 - AT - Income Tax

Summary

Issues:
1. Rectification of order regarding deduction under section 80J for Glost Kiln No. 4.
2. Preliminary objection raised by respondent regarding limitation for rectification application.
3. Consideration of adjournments sought by department in relation to limitation.
4. Merits of the case regarding eligibility for deduction under section 80J for Glost Kiln No. 4.

Analysis:

1. The main issue in this judgment revolves around the rectification of an order regarding the deduction under section 80J for Glost Kiln No. 4. The Tribunal found a glaring mistake in allowing the deduction for this kiln as it commenced production after the cut-off date specified in section 80J(4) of the Act.

2. A preliminary objection was raised by the respondent regarding the limitation for filing the rectification application. The Tribunal had to determine whether the application was barred by limitation under section 254(2) of the Act. The respondent argued that the application was incomplete due to adjournments sought by the department, making it ineligible for consideration.

3. The Tribunal carefully considered the adjournments sought by the department and the timeline for disposing of the rectification application. Despite the adjournments, the Tribunal held that it was obligated to dispose of the application within the specified time frame. The Tribunal rejected the respondent's preliminary objection and proceeded to consider the application on its merits.

4. On the merits of the case, the Tribunal analyzed the grounds raised by the revenue regarding the deduction under section 80J for Glost Kiln No. 4. The Tribunal found that the Assessing Officer had not considered the provisions of section 80J(4) while refusing the claim, and the issue was not raised by the revenue during the appeal. The Tribunal concluded that the omission to apply the mandatory provision of law constituted a mistake apparent from the record, which could be rectified.

5. Ultimately, the Tribunal rectified its order by reversing the grant of deduction under section 80J for Glost Kiln No. 4. The Tribunal upheld the deduction for other units but directed the Assessing Officer to withdraw the deduction permitted for Glost Kiln No. 4. The miscellaneous petition of the revenue was allowed, and the rectification was made in accordance with the legal provisions and precedents cited.

This detailed analysis of the judgment highlights the procedural and substantive aspects considered by the Tribunal in rectifying the order related to the deduction under section 80J, addressing both the preliminary objection raised and the merits of the case.