1974 (3) TMI 10

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..... referred an appeal against the aforesaid order of assessment. The Appellate Assistant Commissioner disposed of the appeal by his order dated the 21 st of October, 1960. Before the Appellate Assistant Commissioner the only contention that was urged and upon which the appeal was allowed was the non-allowance of a sum of Rs. 14,354. The assessee had written off certain stores from its books in its accounting year for 1952-53. This amount was disallowed and added back in the assessment year 1952-53. In the subsequent years the stores were consumed. The claims for such consumption were not claimed in the profit and loss account as expenses but it went to augment the production and sales. These were claimed and allowed in all prior assessments. I .....

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..... n order under sub-section (4) of section 31 of the Indian Income-tax Act, 1922, the Income-tax Officer was competent to reduce the amount of rebate that the assessee was given in the original computation of tax. As mentioned hereinbefore, in the appeal before the Appellate Assistant Commissioner the only question that was involved was about the allowance or disallowance of a sum of Rs. 14,354. The question whether the assessee was entitled to rebate at any particular rate and if so, what was the correct rate of rebate to be granted to the assessee, was not at all an issue before the Appellate Assistant Commissioner. In the affidavit-in-opposition to the rule nisi it has been stated, inter alia, as follows: "At the time of original assessm .....

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..... the Income-tax Officer had been the subject-matter of an appeal before the Assistant Commissioner it could not have been corrected or rectified on the ground of mistake. Such a position has been altered in the new provisions of section 154 of the Income-tax Act, 1961. There was no specific provision of appeal against the service of notice of any consequential order passed under section 31 by the Income-tax Officer. There was, however, a power of revision by the Commissioner under section 33B. In this case, it appears to us, however, that the question whether an assessee is entitled to rebate and if so at what rate is not a matter of mere recomputation of tax. It is a question of determination of application of a particular provision and tha .....

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