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TMI Blog1999 (10) TMI 50X X X X Extracts X X X X X X X X Extracts X X X X ..... n 154 of the Act ?" The dispute relates to the assessment year 1989-90 and arises in the following undisputed factual background : A return was filed on July 27, 1988, by the assessee, a public limited company. The said return was signed by a person not named under section 140 of the Act in relation to "company". Notice was issued under section 154 of the Act to the assessee stating that since its return was not signed by the person permitted to sign it in terms of section 140(c) of the Act, the return was non-est, and all proceedings taken on the basis of that return are void ab initio. Such notice was issued for the years 1988-89 and 1989-90. The assessee filed its objection stating that the return was filed by a person who was authoris ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r is not able to sign and verify the return, or where there is no managing director, by any director thereof : Provided that where the company is not resident in India, the return may be signed and verified by a person who holds a valid power of attorney from such company to do so, which shall be attached to the return : Provided further that,--- (a) where the company is being wound up, whether under the orders of a court or otherwise, or where any person has been appointed as the receiver of any assets of the company, the return shall be signed and verified by the liquidator referred to in sub-section (1) of section 178 ; (b) where the management of the company has been taken over by the Central Government or any, State Government ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y concerned has given notice to the assessee of its intention so to do and has allowed the assessee a reasonable opportunity of being heard. (4) Where an amendment is made under this section, an order shall be passed in writing by the income-tax authority concerned. (5) Subject to the provisions of section 241, where any such amendment has the effect of reducing the assessment, the Assessing Officer shall make any refund which may be due to such assessee. (6) Where any such amendment has the effect of enhancing the assessment or reducing a refund already made, the Assessing Officer shall serve on the assessee a notice of demand in the prescribed form specifying the sum payable, and such notice of demand shall be deemed to be issued un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed for in section 140(c) of the Act. In the case of a company, a return under section 139 is to be signed and verified as per section 140(c) between April 1, 1962, and March 31, 1976, by the principal officer. With effect from April 1, 1976, in the case of a company, a return is to be signed and verified by the managing director himself or where for any unavoidable reason such managing director is not able to sign and verify the return, or where there is no managing director, by any director thereof. It is a well settled salutary principle that if a statute provides for a thing to be done in a particular manner, then it is to be done in that manner and in no other manner (see Nazir Ahmad v. King Emperor, AIR 1936 PC 253 ; Rao Shiv Bahadur S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... andal's case [1950] 18 ITR 569 (SC), it was clarified that the court was not dealing with the question whether it was proper for the Assessing Officer to proceed with the assessment without giving the assessee an opportunity to put his mark as the return in that case was signed by an agent of the illiterate assessee. However, it was observed in that case by one of the judges that the Assessing Officer should have called upon the assessee to put his mark on the return and that appears to indicate that the absence of proper signature or verification is a curable one and the assessee must have an opportunity to rectify it. Section 292B provides that no return of income shall be invalid or shall be deemed to be invalid merely by reason of any m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hing. The power of the officers mentioned in section 154 to correct "any mistake apparent from the record" is undoubtedly not more than that of the High Court to entertain a writ petition on the basis of an "error apparent on the face of the record" (see T S. Balaram, ITO v. Volkart Bros. [1971] 82 ITR 50 (SC)). "Mistake" is an ordinary word, but in taxation law, it has a special signification. It is not an arithmetical or clerical error alone that comes within its purview. A mistake which can be rectified must be a mistake from the record. It may be a mistake either of law or of fact (see M. K. Venkatachalam, ITO v. Bombay Dyeing and Mfg. Co. Ltd. [1958] 34 ITR 143 (SC) and ITO v. Asok Textiles Ltd. [1961] 41 ITR 732 (SC)). A mistake appar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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