9911796707
TMI Blog1981 (7) TMI 150X X X X Extracts X X X X X X X X Extracts X X X X ..... four reassessment orders super tax leviable under the Finance Act had not been levied by the ITO. It is also not known whether in the original assessment such super tax was levied. However, that is not a material fact. So after the appellate order, where the levy of super tax was not a subject matter of appeal, were received the ITO initiated s. 154 proceedings to levy super tax for these four years. The assessee had many objections most important of which were merger and non-availability of s. 154 (1A) of the IT Act, 1961. The ITO with whom the AAC agreed, decided against the assessee. Hence these four appeals. 2. The assessee drew our attention to an article published in Current Tax Reporter, "Merger of assessment orders with appellate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that subsequent amendments will also apply. But this s. 297(2)(d)(ii) is not a legislation by reference. It is not as if in IT Act, 1961 or in this provision a reference is made to another legislation and its application. It is only a case where the scope and extent of application of the IT Act, 1961 to certain proceedings to which ordinarily this enactment is not applicable is specified. So the extent applied is only the provision as it stood on the date of the application. So we hold that s. 154(1A) has no application for these assessment years. 3. The argument of the Deptl. Rep. was that it is a procedural section and the ITO had the power after 1964 and also at the time when fresh assessment orders were made which orders are the subj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tanding anything contained in any law for the time being in force" clearly shows that but for s. 154 (1A) the ITO would not be in a position to amend the assessment order, which has been a subject matter of appeal. So as s. 154(1A) has no application to the facts of the case and because there is merger of ITO's assessment order with that of the appellate order, the ITO is not competent to rectify it. The rectifications for the four assessment years are cancelled. In any event the whole issue is debatable as to whether there is, because of merger, an existing order of the ITO for rectification, whether the mistake is in the appellate order or whether it is the subsisting order because of merger, or whether s. 154(1A) is applicable or not and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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