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TMI Blog2009 (11) TMI 551X X X X Extracts X X X X X X X X Extracts X X X X ..... nt for 1979-80 becomes a mistake by virtue of the condition imposed by the Assessing Officer. - In other words, the original assessment for 1979-80 on this issue gets finalized only when this court decided the reference case for the year 1977-78. Therefore, in our view, the original assessment for 1979-80 becomes a mistaken order on account of operation of the judgment of this court with regard to the assessment of the very same amount of refund of excess power charges from the KSEB for the assessment year 1977-78. We, therefore, hold that within four years from the date of judgment of this court in the reference case for 1977-78, the Assessing Officer is entitled to revise the assessment for 1979-80 by virtue of the right reserved for revi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,598 was returned for assessment. However, by the time assessment for 1979-80 was taken up, the Commissioner of Income-tax (Appeals) decided the appeal for 1977-78 in favour of the Department, i.e., by sustaining the assessment of the very same amount for the assessment year 1977-78. This prevented the Assessing Officer from including the very same income in the assessment for 1979-80, even though the assessee had returned the income and offered to pay the tax. It is pertinent to note that the assessment for 1979-80 was completed by the Assessing Officer excluding the income returned by the assessee by stating as follows : "In the return, the assessee has added to the business income of the year, power charges refund of Rs. 5,58,598 for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bed under section 149 with reference to the judgment rendered by this court for the assessment year 1977-78. Even though revised assessment was passed based on the condition stated in the original assessment order and based on the income returned by the assessee, the assessee contested the revised assessment on the ground that the same having been passed beyond four years from the end of the year, is time barred under section 150(2) of the Income-tax Act. The Commissioner of Income-tax (Appeals) in first appeal dismissed the assessee's contest on limitation by holding that the order of the Tribunal which was the subject matter of reference before this court for the assessment year 1977-78 was the first order dated January 30, 1982, with ref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to contended that limitation for revision of assessment under section 149 should be reckoned with reference to the date of the second order of the Tribunal against which reference was taken to this court by the assessee. Even though the interpretation placed on sub-section (2) of section 150 by the assessee's counsel is tenable, we are of the view that limitation has no application in this particular case because the original assessment itself was a conditional order passed by the officer reserving right to revise it after the assessment for 1977-78 attains finality. It is seen that the assessee themselves offered the income for tax for the assessment year 1979-80 and in spite of inclusion of the amount in the return filed by the assessee, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rcised by him within the time limit provided for rectification of assessment under section 154. Even though counsel appearing for the assessee contended that time limit for rectification of mistake is four years from the date of order sought to be revised, we are of the view that limitation in this case has to be considered with reference to the original assessment which was a conditional order made subject to the finality of assessment for 1977-78. In fact, by incorporating the condition above stated in the original assessment for 1979-80, the Assessing Officer has made the assessment of this amount for the year 1977-78 also as part of this order. Therefore, once the assessment of the very same amount for 1977-78 is ultimately cancelled by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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