TMI Blog1994 (11) TMI 43X X X X Extracts X X X X X X X X Extracts X X X X ..... peal filed by the junior authorised representative at the time of hearing challenging the very jurisdiction of the order passed by the Income-tax Officer himself who was the appellant before the Tribunal ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal erred in law in allowing the appeal of the Income-tax Officer on the preliminary ground urged in the additional ground taken by the Departmental representative at the time of hearing and in not deciding the appeal on the merits ? 3. Whether the Tribunal erred in law and misdirected itself in holding that there was no mistake apparent from record within the meaning of section 154 in so far as the inadvertent omission on the part of the Income-tax Officer in not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessments for the above assessment years, the Income-tax Officer omitted to consider this claim of the assessee. On receipt of the orders of assessment, by a letter dated January 4, 1971, the assessee pointed out this omission to the Income-tax Officer. Along with this letter, a precise computation of relief due to it in terms of section 49D of the 1922 Act/section 91(1) of the 1961 Act along with proof of payment of tax in the United Kingdom was also submitted. The Income-tax Officer treated the above application as an application under section 154(1) of the Act, and considering the facts and circumstances of the case rejected the claim of the assessee for rectification and for allowance of relief under section 49D of the 1922 Act or un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct in an appeal against the order under section 154 of the 1961 Act. The second ground pertained to fulfilment of the requirements of section 49D of the 1922 Act and section 91(1) of the 1961 Act. The Tribunal allowed the appeals of the Revenue, set aside the order of the Appellate Assistant Commissioner and restored the orders of the Income-tax Officer. The assessee thereupon applied to the Tribunal for reference of the questions of law arising out of the above order to this court. On the refusal of the Tribunal to state the case, it applied to this court and this court having been not satisfied with the correctness of the above decision of the Tribunal refusing to make a statement and refer the questions of law arising out of its order to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cer. It is only at a later stage, much after the completion of the assessment for the above assessment years, that by an application dated January 4, 1971, the assessee furnished computation of relief claimed by it under the above provisions along with proof of payment of tax in the United Kingdom. Therefore, the question that arises for consideration is whether in such a case relief can be given to the assessee in exercise of the powers under section 154 of the Act once the same has not been allowed while computing the income-tax in the assessment for the relevant assessment years. In other words, the real question is whether the Income-tax Officer, in exercise of the powers under section 154 of the Act, can reconsider the allowability of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s outside the record. A decision on a debatable point of law or failure to apply the law to a set of facts which remain to be investigated cannot be corrected by way of rectification. The legal position is thus now settled that a mistake which is not obvious, patent and self-evident and mistake on which conceivably there can be two opinions cannot be rectified by way of rectification of mistake under section 154 of the Act. In other words, in the garb of exercise of the power of rectification under section 154 of the Act, the income-tax authorities cannot revise or review their order generally or reconsider the conclusions arrived therein on the facts before them at that time on the basis of new facts brought on record by the party seeking ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n relief under the relevant provisions. In fact, it is only after the completion of assessment by the Income-tax Officer that some documents, whatever might be their evidentiary value, were produced in support of the claim for relief from double taxation. The Income-tax Officer was justified in not acting upon such evidence or material which was produced subsequent to the passing of the order of assessment because that would amount to review of its orders of assessment on the basis of fresh material or evidence which did not form part of the record of the case. Situated thus, in our opinion, the Income-tax Officer rightly refused to do so in the purported exercise of the power of rectification under section 154 of the Act, which, as stated ..... X X X X Extracts X X X X X X X X Extracts X X X X
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