9911796707
TMI Blog1985 (7) TMI 49X X X X Extracts X X X X X X X X Extracts X X X X ..... initiated proceeding under section 154 of the Income-tax Act, 1961, and by his order dated the 14th March reduced the extra shift allowance from 50% of the normal depreciation allowance to 50% of 132/300 of such depreciation. The extra shift allowance as originally allowed was reduced by Rs. 29,887. On an appeal preferred by the assessee, the Appellate Assistant Commissioner, following the order of the Tribunal in respect of an earlier assessment year in the case of the assessee, held that the, assessee was entitled to extra shift allowance as originally allowed and allowed the appeal. The Revenue preferred an appeal from the order of the Appellate Assistant Commissioner before the Income-tax Appellate Tribunal. It was submitted on beh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Learned advocate for the assessee contended to the contrary and submitted that in the facts of the instant case, there was no mistake apparent from the record as at the point of time when the Income-tax Officer sought to rectify the mistake. The point at issue was highly debatable. The question has not uptill now been considered and decided by the Supreme Court. Different Benches of the Tribunal had taken different views on the issue and references were made both at the instance of the Revenue as also of the assessee resulting in different decisions of different courts. It was submitted that the decision of this court in Ganesh Sugar Mills Ltd. [1969] 73 ITR 395 by itself could not be the justification for the Income-tax Officer to invoke ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dhra Pradesh High Court has also referred this question to a Full Bench as there was no pronouncement of the court one way or the other on this question affecting a large number of seasonal factories. The said decision of the Full Bench is in the case of Addl. CIT v. Sarvaraya Sugars Ltd. [1981] 129 ITR 538 (AP) [FB]. Finally, learned advocate for the assessee referred to a decision of this court Jajiyajeerao Cotton Mills Ltd. V. ITO [1981] 130 ITR 710, where it was held by this court that where there is a divergence of views which ultimately was settled by the Supreme Court, it cannot be said that there was no debate or doubt on the question prior to the decision of the Supreme Court. It was submitted that unless this issue was finally d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Mills Ltd. [1969] 73 ITR 395 is "on all fours " and " the assessee is entitled to extra shift allowance as was done by the Income-tax Officer under his order of rectification dated March 14, 1969 ", considered an alternative contention and held that in the absence of a Supreme Court decision on the point, it cannot be said that the point at issue was free from doubt. The Tribunal, therefore, held that the Income-tax Officer could not withdraw the excess of extra shift allowance under section 154. We are, however, unable to accept this reasoning of the Tribunal. After the decision of this court was rendered, there was a mistake apparent from the record of assessment which the Income-tax Officer rectified under section 154. When the said rect ..... X X X X Extracts X X X X X X X X Extracts X X X X
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