1991 (4) TMI 42

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..... 2),in revising the quantum of the reduction in rebate in super tax, though the period of 4 years from the date of the original assessment had expired on February 16, 1972 ?" The assessment year concerned is 1963-64. The assessee had issued bonus shares of Rs. 1,33,75,000 in the previous year relevant to the assessment year 1963-64. Under the Finance Act, 1963, for such an issue, the rebate of 30 per cent. on super tax admissible was to be reduced by 12 1/2 per cent. of the bonus issue. The Income-tax Officer referred to this aspect in the order of assessment completed by him on February 17, 1968. However, the rebate was actually not reduced while determining the tax payable by the assessee. The order of assessment was challenged in appe .....

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..... on January 4, 1974 giving effect to the Tribunal Judgment dated May 3, 1972 is concerned, the assessee has no grievance. The grievance is against the calculation and determination of tax on the basis of the said assessment order. The assessee's case is that not repeating the mistake in calculating and determining the tax by the Income-tax Officer amounts to a rectification of a mistake and since it is not done within the time limit prescribed, the Income-tax Officer could not have done so. What is necessary to be appreciated is that, while giving effect to the Tribunal's order, the Income-tax Officer is bound to determine the total income in accordance with the Tribunal's order. He is also bound to give special directions, if any, necessar .....

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..... not permissible under the provisions of the Income-tax Act. In our view, this argument is entirely misconceived. Merely because the Income-tax Officer had inadvertently failed to reduce the rebate by 12.5 per cent. of the bonus issue while making the initial assessment order which is admittedly erroneous under the provisions of the Finance Act, 1963-he was not obliged to repeat this mistake when lie made the order giving effect to the order of the Appellate Tribunal. In our view, the order passed by the Income-tax Officer on January 4, 1974, is perfectly in accordance with law and does not amount to a rectification order at all. It is nothing more than an order giving effect to the order of the Tribunal in appeal. Mr. Mehta relied on a j .....

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