9911796707
TMI Blog1972 (7) TMI 90X X X X Extracts X X X X X X X X Extracts X X X X ..... turnovers at Rs. 32,06,520.39 and Rs. 7,14,144.43 respectively. The case of the petitioner is that the said taxable turnover, as is seen from the appellate order, includes the purchase turnover of raw hides and skins effected locally amounting to Rs. 2,80,149.12. His case is that during the year in question the raw hides and skins so purchased by him, and which was subject to tax in accordance with the provisions of the Tamil Nadu General Sales Tax Act, were dressed and sold during the year in question and all such sales of dressed skins effected, but from and out of the pool of raw hides and skins brought to tax under the impugned order, are to be taxed differently under item 7(b) of the Second Schedule to the Act. It is common ground that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellate authority decided and concluded the appeal, there was no judicial pronouncement which clearly laid down the modus operandi under which raw hides and skins and dressed hides and skins should be taxed. According to the petitioner, it was only in the decision returned by this court on 18th April, 1969, in Sadak Thamby Co. v. Appellate Assistant Commissioner of Commercial Taxes[1969] 24 S.T.C. 468., the position has been made clear. He further urges that by reason of the judicial pronouncement as above, any levy contrary to the principle laid down in the said decision is illegal and as no authority can impose or collect taxes illegally, the petitioner has a right and the 1st respondent is bound legally and publicly to enquire into an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scope of the power of rectification. Section 55 authorises the assessing authority or the appellate or revisional authority (including the Appellate Tribunal) to rectify any error apparent on the face of the record, but within the time prescribed in sub-section (1) of section 55. In the instant case, the application has been made in time. The question is as to what is an error apparent on the face of the record. The expression "error apparent on the face of the record" appears in various statutes including the Constitution of India. But the expression has to be understood in the context in which it is used and its interpretation varies according to the force and import of such context. In a case where a rectification is sought, it is not fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of enforcement of a right. The Income-tax Officer is an officer concerned with assessment and collection of revenue, and the power to rectify the order of assessment conferred upon him is to ensure that injustice to the assessee or to the revenue may be avoided. It is implicit in the nature of the power and its entrustment to the authority invested with quasi-judicial functions under the Act, that to do justice it shall be exercised when a mistake apparent from the record is brought to his notice by a person concerned with or interested in the proceeding." (The underlining is mine.) If, therefore, the power vested in the authorities in sub-section (1) of section 55 is not always a discretionary power, but is normally to be understood as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... akanji Spinning Weaving Co. Ltd.(2) Soon after the Bombay High Court rendered the above judgment, the respondent-company applied to the Income-tax Officer for refund of the tax paid and incidentally sought for a rectification of the original order. This was negatived by the Income-tax Officer as well as the Commissioner of Income-tax in revision. The Bombay High Court, however, on an application made to it under article 226 of the Constitution directed the Income-tax Officer to revise the order in the light of the judgment in Khatau Makanji Spinning Weaving Co. Ltd. v. Commissioner of Income-tax[1956] 30 I.T.R. 841. The department took up the matter in appeal to the Supreme Court. The learned judges said: "There is no doubt that, in v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an order passed by the 1st respondent as a quasi-judicial Tribunal. W.P. No. 152 of 1970 is, therefore, dismissed. There will be no order as to costs in both the writ petitions. It is for the petitioner to place such material as would fit in with the formula and the data laid down by this court in Sadak Thamby Co. v. Appellate Assistant Commissioner of Commercial Taxes[1969] 24 S.T.C. 468., and satisfy the authorities that the earlier appellate order has resulted in an illegal levy. For this purpose the 1st respondent is directed to take on file the application for rectification dated 3rd October, 1969, and deal with it in accordance with the principles indicated in this judgment and in Sadak Thamby Co. v. Appellate Assistant Commiss ..... X X X X Extracts X X X X X X X X Extracts X X X X
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