9911796707
TMI Blog1986 (9) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... s and in the circumstances of the case, the various requirements of Para. F of Part I of the First Schedule to the Finance Act, 1965, could be determined in proceedings under section 154 ? 3. Whether, on the facts and in the circumstances of the case, the Tribunal is right in holding that there was a mistake apparent from the record in the matter of withdrawal of rebate of income-tax under clause (i)(c)(iii)(B) of the second proviso to Para. F of Part I of the First Schedule to the Finance Act, 1965 ? 4. Whether the Tribunal is justified in holding that the company is one in which the public are substantially interested ? 5. Whether the Tribunal is justified in relying on the regular assessment order for 1964-65 and tax calculation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0,000, as worked out under the second proviso. The Income-tax Officer thus held that the assessee should have been given relief of Rs. 13,19,554 only instead of Rs. 15,07,054. The Income-tax Officer held that the above mistake was apparent from the record and being a mistake of calculation only, the same was rectified. It may be mentioned at this stage that the assessee did not file any reply to the notice issued to him as to why a rectification may not be made in the original assessment order. The assessee, aggrieved against the order of the Income-tax Officer, filed an appeal before the Appellate Assistant Commissioner. The appeal was dismissed by the Appellate Assistant Commissioner. Thereafter, the assessee filed a second appeal before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... blic are substantially interested. It was thus submitted by Mr. Surolia that the Tribunal was right in applying subclause (iii) of clause (c) of the second proviso to Para. F of Part I of the First Schedule to the Finance Act. It was further submitted in this regard that sub-clause (i) of clause (c) of the second proviso to Para. F of Part I of the First Schedule to the Finance Act also applied to the case of a company as is referred to under section 108 of the Income-tax Act. In order to determine the controversy raised in the present case, it would be proper to reproduce clause (c) of the second proviso of Para. of Part I of the First Schedule to the Finance Act, 1965 : Income on which rebate is to be allowed Rate of rebate Provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proviso in the case of a company referred to in item I or item II of that proviso shall be reduced by the sum, if any, equal to the amount or the aggregate of the amounts, as the case may be, computed as given below under that provision. A persual of clause (c) mentioned above Clearly goes to show that the whole amount of the dividends other than dividends on preference shares is to be reduced at the rate of 7.5% from the total amount of rebate allowed under the general provision. This reduction of rebate at the rate of 7.5% has to be made on the total amount of the dividends in the case of a company as is referred to under section 108 of the Income-tax Act or any company which is exempt from the operation of section 104 of the said Act by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sent case remain undisputed and the Tribunal in these circumstances was right in taking the view that it was a mistake of calculation in not reducing the amount of rebate as provided. Under the above, circumstances, the questions referred to us are answered in the following manner. Question No. 1 : It is held that, on the facts and in the circumstances of the case, the withdrawal of the income-tax rebate based and computed on the quantum of dividends declared by the company is not opposed to the provisions of sections 4 and 5 of the Income-tax Act, 1961. Question No. 2: It is answered in the affirmative. It is held that, on the facts and in the circumstances of the case, the various requirements of Para. F of Part I of the First Sched ..... X X X X Extracts X X X X X X X X Extracts X X X X
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