9911796707
TMI Blog1989 (12) TMI 64X X X X Extracts X X X X X X X X Extracts X X X X ..... end of the accounting period in respect of sales-tax but not paid. According to him, the provisions of section 43B were applicable. The assessee replied that section 43B was not applicable because this amount was not payable to the State Government. He also relied upon the Tribunal's decision in the case of Thakersy Babubhai, Ahmedabad Bench in IT Appeal No. 320/Ahd/1985. Thereafter, as stated above, the Commissioner has passed the above order under section 263 of the Act dropping the proceedings under that section. Subsequently, the Commissioner issued what he calls a " notice under section 154 of the I.T. Act, 1961 " stating that there was a mistake apparent from the record in view of the specific provisions of the section and addition o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f ITO v. K.S. Lokhandwala [1989] 31 ITD 305 (Ahd.). The learned Departmental Representative on the other hand submitted that the Commissioner's order under section 263 could be amended and that was not a debatable issue. According to him, the said amount of Rs. 43,811 was a part of the closing balance and if it was ignored earlier, correcting that mistake was within the power of rectification because it was an apparent mistake on the record. 5. As stated above, the Commissioner has purported to rectify what he calls an " order under section 263 dropping the earlier proceedings under that section ". It is clear that no more than the notice under that section had been issued earlier and no order revising the Income-tax Officer's order had b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to the assessee. If it does not do so it is not an order. When a statutory power is conferred on a statutory authority it has to be exercised strictly in accordance with the provisions of the statute with a view to carry out its ultimate purpose and not go contrary to it. Therefore, what the Commissioner calls an " order passed under section 263 " was not an order. It was only a communication of a decision not to proceed with action under section 263. Only an order can be rectified under section 154. Since this was not an order it could not be rectified. Consequently the second " notice under section 154 " amounted to nothing more than a fresh initiation of proceedings under section 263 which has resulted in the above order under section ..... X X X X Extracts X X X X X X X X Extracts X X X X
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