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2015 (5) TMI 84 - HC - Income TaxRectification of mistake - whether the assessee could not point out any apparent mistake in the order passed under Section 264 which could be rectified and therefore, the revision petitions filed were rejected? - Held that:- The assessee has raised a legal objection in his communications dated 26.02.2004 and 27.02.2004 before respondent No.1, pertaining to the assessment years 1996-97 and 1997-98 wherein he has raised the objection of jurisdiction under Section 149(1)(b) and specified that the income chargeable would be the income that escaped tax, which is the relevant factor. Thus, the quantum of tax which has escaped assessment was to be kept in mind. Admittedly, the interest income was only ₹ 2,54,659/- which had, supposedly, escaped income and the return had not been filed. The income chargeable to tax on the said amount was, thus, relevant factor which was sought to be agitated but never dealt with by respondent No.1, solely on the ground that the return had not been filed. The objections having not been dealt with solely on the ground that return had not been filed inspite of being asked to, would, thus, violate the mandate of the Apex Court laid down in GKN Driveshafts (India) Ltd. Vs. Income Tax Officer & others [2002 (11) TMI 7 - SUPREME Court] wherein it has been held that the Assessing Officer is bound to dispose of the objections by passing a speaking order. The petitioner had filed the revision petitions under Section 264 and thereafter, the rectification application was filed under Section 154 of the Act. Admittedly, the rectification application was also within limitation and solely on account of the fact that it was filed just before the limitation coming to an end, would not be a ground for respondent No.2 to deny the relief. Merely on the ground that the amount of demand on conclusion of the reassessment proceedings was more than ₹ 1 lac, on the income which is chargeable and which had escaped assessment would have to be seen at the time of issuing notice under Section 149 of the Act and not at the time of the conclusion of assessment proceedings and therefore, the reasoning arrived at by respondent No.2 is also without any justification. Also there was sufficient material before respondent No.1 regarding the amount of compensation received by the deceased-assessee which had been supplied by the LAC vide letter dated 08.03.2004 and therefore, the respondent No.1 was not justified in coming to the conclusion that the deceased-assessee had not supplied the material facts. It was also the bounden duty of respondent No.1 to take into consideration the fact that the land fell within the notified area of the Panipat Municipality or not. Thus the matter is liable to be remanded to respondent No.1 for fresh decision and to take into consideration the returns filed for each assessment years, separately, and also take into consideration the TDS certificates issued by the banks regarding the interest element. The issue of jurisdiction for the 2 years pertaining to the years 1996-97 and 1997-98, as arising under Section 149(1)(b) also be specifically dealt with. - Decided in favour of assessee.
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