1982 (6) TMI 76

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..... the rectification was over-ruled by the WTO. It would appear that the orders u/s 35 so passed are under appeal before the AAC. On 21st Dec, 1981, the Commr, looked into the file of the assessee and found that the WTO had in his original orders dt. 23rd Feb, 1979 not investigating the admissibility of the bad debts totalling upto Rs. 3,42,838. Acting u/s 25(2) of the WT Act and giving the assessee an opportunity he directed the WTO to revise his assessments by adding the above amount of Rs. 3,42,838 for each of the year under appeal. The present appeals are filed against the above common order of the Commr. The Commr. had gone into the admissibility of the bad debts in para three of his order. 2. Before us the ld. Counsel for the assessee .....

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..... f which in the light of the Supreme Court decisions he could not have taken action u/s 35. According to the ld. Counsel, apart from the fact that the original order u/s 16(i) itself was open to be acted upon by the Commr. the fact that the order u/s 35 almost carried within it an inevitable upsetting on appeal gave jurisdiction to the Commr. to protect the Revenue. The assessee has filed an appeal against the order u/s 35 which, therefore, exposed it to a reversal. It is also pointed out that the provision of separate appeals against orders u/s 16(i) and s. 35 also indicated that the Commr. has jurisdiction in respect of the first order and if necessary even in respect of the second order. 4. On merits it is pointed out that the Commr. h .....

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..... stion of any prejudice to the Revenue. That the claim of the ld. Counsel for the Department of the preliminary issue is not correct would be clear from another point. In the present case, the assessee has filed an appeal against the rectified order. It she has not filed an appeal but has accepted the rectification, certainly, the Department would not agree that the assessee could resist collection of the enhanced tax, after rectification, before, if need be, the Recovery Officers. The valid order is the rectified order. Secondly, if the orders of the WTO were to be modified in appeal by the Commr. (Appeals) or Tribunal or even disturbed in a writ proceedings by the High Court or Supreme Court, it would be presumptuous to hold that the Commr .....

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