9911796707
TMI Blog1987 (5) TMI 69X X X X Extracts X X X X X X X X Extracts X X X X ..... ny extension for filing the same. However, thereafter by an order u/s. 154 passed on 12-2-1985 the Income-tax Officer cancelled the ex parte assessment on the ground that the assessee had filed her return on 31-3-1983 declaring an income of Rs. 70,500 whereas notice had been issued to the assessee for the fault of not having filed any return. 3. Against the said order the assessee came up in appeal before the learned Appellate Asstt. Commissioner and submitted that the Income-tax Officer had no jurisdiction to cancel the ex parte assessment u/s. 154. The learned AAC however did not accept the assessee's submission and upheld the order of the ITO and hence the present appeal before us. 4. Shri K.P. Bhatnagar, the learned counsel for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... present case. In the case of O.RM.M.SM.SV. Sevugan all that the Hon'ble Madras High Court decided was that the power of rectification u/s. 35 of the Indian Income-tax Act, 1922 (which corresponds to section 154 and 254(2) of the Income-tax Act, 1961) does not enable an order to be reversed by revision or by review, but permits only some error, which is apparent on the face of the record to be corrected. We are not prepared to agree with the submission made on behalf of the assessee. The power intending to be given u/s. 154 is to rectify an error apparent on the face of the record. Amendment of the order is the consequence of the rectification and its purpose is to give effect to the rectification. If the rectification involves an amendment, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder by cancelling the order of assessment itself. In this case it is only because the ex parte assessment was framed by the ITO at the figure of Rs. 35,000 that it suits the assessee to say that the ex parts order could not be rectified u/s. 154 so as to cancel it, because the assessee had herself declared an income of Rs. 70,500. What would have happened in the case where the assessee had herself declared a figure of income much lower than that assessed by the ITO u/s. 144 ? If that were the case, the assessee who had filed her return before the passing of such an ex parte order, would have herself approached the ITO for rectification u/s. 154 to say that the error should be rectified and the ex parte order should be cancelled. A provisio ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
