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TMI Blog1967 (9) TMI 27X X X X Extracts X X X X X X X X Extracts X X X X ..... year Samvat 2003, he was assessed under section 23 on 16th June, 1952, in respect of his income from the business of speculation which he carries on both at Bombay and at Indore among other businesses. Later, the Income-tax Officer came to know that the assessee had suppressed speculation profits to the extent of about Rs. 30,000. He, therefore, issued a notice against the assessee under section 34(1)(a) of the Indian Income-tax Act. At that stage the assessee himself disclosed new figures as to his receipts from the speculation business as also of his payments made in the speculation business. The figures as given at the time of the original assessment and as given by the assessee at the time of the reassessment proceedings under section 34 were as follows : Figures furnished at the Figures furnished at time of the original the time of proceedings assessment under section 34. Rs. Rs. Speculation receipts 3,83,436 4,14,585 Speculation payment made by the assessee 4,49,650 5,35,160 It will thus be noticed that the assessee himself showed at the time of the proceedings under section 34 that his receipts from the speculation business were larger by the sum of Rs. 31,14 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lar provisions in the Income-tax Act, Mr. Shah on behalf of the assessee has raised a contention based upon the terms of section 34(1)(a) itself. He has pointed out that, subject to the other conditions laid down in clause (a) of section 34(1) being fulfilled, the section provides that, if the Income-tax Officer has reason to believe that "income, profits or gains chargeable to income-tax have escaped assessment for that year, or have been under-assessed, or assessed at too low a rate, or have been made the subject of excessive relief under the Act, or excessive loss or depreciation allowance has been computed", he "may proceed to assess or reassess such income, profits or gains or recompute the loss or depreciation allowance". What is emphasized is that in conferring the power upon the Income-tax Officer to assess or reassess the income, profits or gains the expression used is de such income, profits or gains", but when conferring the power to recompute the loss or depreciation allowance the word "such" is not used before the word "loss". The effect of this, according to counsel, is that in the case of income, profits or gains chargeable to income-tax which have escaped assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to have used the word "such" before the word "loss." Apart from that, the expressions "excessive loss" and "the loss" in the section appear in the context of the entire provisions of the section which deal with income escaping assessment and where excessive loss is allowed and a recomputation of the loss takes place, it seems to us that recomputation can only take place with a view to garnering in the income escaping assessment under the first clause. It is clear from the provisions of the section itself that it was not intended for the benefit of the assessee but only for the benefit of the revenue. Moreover, we find that where an assessee is affected by such an error as has been pleaded on behalf of the assessee in the present case, a clear power of rectification of mistakes in favour of the assessee is granted by section 35. The mistakes which were pointed out in the present case on behalf of the assessee were, as we have shown above, two. Firstly, that there were mistakes in totalling, and secondly, that there was an amount of loss not declared at the time of the original assessment. If these were indeed mistakes, as is now sought to be made out, the power of rectificati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be larger and sought to be brought to charge as escaped income. In that case it was urged that the income from other sources had, however, been over-computed and allowance should be made for that over-computation. The High Court held : "Here two items were brought definitely into the assessment, viz., interest on securities, and dividends, and those two items were under-assessed, and to the extent to which they were under-assessed they have escaped assessment. There is nothing to show that the other item 'other sources'---Interest, which includes interest on mortgages, bank deposits, and so forth, would have been assessed at a lower figure if the Income-tax Officer had had the right figure in respect of the interest on securities and dividends. It seems to me, therefore, that this is a case in which certain items have escaped assessment, although it is true, that another item has been overassessed. But credit cannot be given to the assessee in respect to the latter item." No doubt in that case, the income under another head of charge was claimed to have been over-assessed and in the present case the income under the same head of charge is concerned, but we do not think that ..... 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