9911796707
TMI Blog1988 (12) TMI 78X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 154/155(5) of the Income-tax Act, 1961, relating to the assessment orders as mentioned in the respective writ petitions. The writ petitions were moved mainly on the grounds that the conditions precedent necessary to confer jurisdiction upon the Commissioner of Income-tax, West Bengal, respondent No. 2, to initiate the purported proceedings and to make the alleged rectification under section 154 read with section 155(5) of the Income-tax Act, 1961, do not exist and have not been fulfilled and satisfied. There were no facts and materials whatsoever before respondent No. 2 to allege that the factory of the petitioner or any of its plant and machinery had been taken over by the said company for consideration as mentioned therein and the all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut by the petitioner is claimed to be a mode of carrying on the business of the said factory and was commercial exploitation of the commercial assets of the petitioner. The income from the said hiring is assessable under the Income-tax Act as business income. The petitioner filed its returns tinder the Income-tax Act for the assessment years taking up such a stand. The petitioner was, however, surprised to receive from respondent No. 2 a purported notice dated April 20, 1978, issued by him under section 154 read with section 155 of the said Act wherein respondent No. 2 alleged, inter alia, that the assessment made under section 143(3) of the said Act required to be amended as there was a mistake apparent from the record within the meaning o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the proposal, and from the said order it appeared that in the application for approval of the Central Government, it was categorically stated that the machinery of the petitioner-company will, for the present, be taken on hire, with a view to avoid withdrawal of development rebate. It was claimed by the respondents that the transfer effected in favour of Messrs. Bengal Saw and Steel Products (P.) Ltd. was not complete and comprehensive. Only for the purpose of avoiding withdrawal of development rebate, such a device was made. The sale of machinery will be deemed to have taken place as soon as the assessee transferred the other properties, namely, land, shed, structure and everything embedded on earth. For all practical purposes, the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 154/155 of the Income-tax Act finding, inter alia, that the assessment/refund order under section 143 required to be amended as there is a mistake apparent from the record within the meaning of section 154/155 of the Income-tax Act, 1961. The rectification of the mistake, as per details, has been mentioned and an opportunity was given to the assessee to appear in person or by any of his authorised representatives and/or to place any written reply to the notice. The law is very clear that an assessing authority can issue proper notice if any mistake is found relating to the assessment. Opportunities have been given to the assessee to ventilate his grievances, if any. At this stage, the writ petitioner has abruptly come to this court and th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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