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TMI Blog1991 (3) TMI 116X X X X Extracts X X X X X X X X Extracts X X X X ..... thin the meaning of section 154 and in upholding the action of the Income-tax Officer in taking back the benefit of tax credit certificates originally granted in respect of the following items of receipts : (a) Profits on sale of assets. (b) Interest on bank deposits. (c) Rent received. (d) Other interest ? 2. Whether, on the facts and in the circumstances of the case and having regard to the fact that the assessee-company was wholly engaged in the manufacture and production of biscuits and confectionery, the Tribunal erred in law in holding that the items mentioned in question No. 1 above, though formed part of the business income, were not income attributable to the manufacture or production of biscuits and confectionery within ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come of the assessee both for the base year and other years, calculated the tax payable on the income so reduced and correspondingly reduced the amount of relief allowable under section 280ZB. This was done on the assumption that such types of income were not attributable to the manufacturing and/or production activities. The assessee filed appeals. The Appellate Assistant Commissioner agreed with the assessee that the question whether the kinds of income such as rent received and profits on sale of assets do or do not constitute profits or gains attributable to the assessee's manufacturing and/or production activities was not free from doubt. Accordingly, he held that the rectification orders passed by the Income-tax Officer in that beha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... udgment, this argument of learned counsel requires to be rejected for more than one reason. In the first place, both the Appellate Assistant Commissioner and the Tribunal have proceeded on the basis that these were the only orders of rectification and there were no other orders. Secondly, we have not been shown by learned counsel for the Revenue that the Income-tax Officer had passed any rectification order earlier either for the assessment year 1965-66 or for the years under reference. That apart, the manner in which the computation is made in the impugned order of rectification for the assessment year 1966-67 clearly suggests that these are the only orders of rectification. If the impugned orders were passed merely as a consequence of ear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er section 154 of the Income-tax Act, 1961. It cannot certainly be said in a case like the one before us that a mistake, if any, was patent or glaring on the face of the record. There is another aspect argued before us by Shri Dilip Dwarkadas. He stated that while the condition for the application of section 280ZB is that the assessee must be engaged in the manufacture or production of certain articles and liable to pay any tax in respect of its profits for the assessment year 1965-66, the relief to be computed under section 280ZB is on the difference between tax which the assessee is liable to pay in the base year and in the subsequent year. This argument was not advanced by the assessee before the Appellate Assistant Commissioner and th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payable for the succeeding base year, then the company shall be granted a tax credit certificate for an amount equal to twenty per cent. of such excess : Provided that the amount of the tax credit certificate shall not for any assessment year exceed ten per cent. of such tax payable by the company for that year . . ." Prima facie the main part of sub-section (1) provides the condition for eligibility. Once the assessee is eligible, the relief is to be computed under clauses (i), (ii), etc. The expression used in clause (i) is "liable to pay any tax for the assessment year commencing on the lst day of April, 1965". This liability is, as mentioned in sub-section (1) of the main section, of "any company". There is no indication that thi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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