TMI Blog1970 (3) TMI 153X X X X Extracts X X X X X X X X Extracts X X X X ..... ct?" The assessee is a firm supplying oil-seeds to Prag Ice and Oil Mills, Aligarh. For the year 1958-59, proceedings under section 21 of the Act were taken against the assessee, during which the assessee contended that it acted merely as a purchasing agent to Prag Ice and Oil Mills, Aligarh, and, in support of the contention, it produced the accounts as well as filed an affidavit. The Sales Tax Officer accepted the plea of the assessee and passed an assessment order dated 27th February, 1962, holding that the assessee was not liable to sales tax on its turnover of purchases made on behalf of Prag Ice and Oil Mills. Later on, it was discovered that in the affidavit filed by the assessee, it had also been mentioned in paragraph 3 thereof t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ortunity of being heard. (2) Where such rectification has the effect of enhancing the assessment, the authority concerned shall serve on the dealer a revised notice of demand in the prescribed form and therefrom all the provisions of the Act and the rules framed thereunder shall apply as if such notice had been served in the first instance." An order under section 22 can be passed only to rectify a mistake which is apparent on the face of the record and the limitation for such an order is three years from the date of the order sought to be rectified. In the instant case, the original assessment order was passed on 27th February, 1962. That order could be rectified under section 22 up to 27th February, 1965. The order of rectification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... S.C.)., the Supreme Court held that "an order under section 23A of the Indian Income-tax Act, 1922, as amended by the Finance Acts of 1955 and 1957, made by the Income-tax Officer directing payment of additional super-tax is not an order of assessment within the meaning of section 34(3) of the Act, and to such an order the period of limitation prescribed under section 34(3) does not apply." It was further observed that "every order which contemplates computation of income for determination of the amount of tax payable is not an order of assessment within the meaning of the Act: nor does prescribing of procedure for determining and imposing tax liability make it an order of assessment." Moreover, an order under section 22 can be passed not o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax which had not been originally levied, it would be covered by the period of limitation provided under section 22 and not by the period of limitation provided in sub-section (2) of section 21 because such an order of assessment would be a special order which comes into being as a result of the discovery of a mistake apparent on the face of the record. The Legislature has chosen to provide a separate period of limitation for such an order. It is thus clear that the limitation prescribed for an order of assessment under sub-section (2) of section 21 cannot be applied for an order passed under section 22. The learned counsel then submitted that in the instant case section 22 could not be applied because it was a case which in fact fell wi ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
