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2015 (2) TMI 1388 - HC - Income TaxRectification u/s 154 - period of limitation - whether the period of four years provided in sub-section (7) of Section 154 shall start from the date of the original order or from the date of the amended order? - Original assessment u/s 143(3) for the assessment year 1993-94 was passed on 22nd March, 1996 allowing deduction under Chapter VIA without setting off unabsorbed depreciation and deduction allowed by the order dated 22nd March, 1996 was rectified under Section 154 - HELD THAT:- Once the order dated 22nd March, 1996 was amended in order to give effect to the appellate order, it is the order dated 27th December, 1999 which became the operative order. The original order dated 22nd March, 1996 lost its existence. The law well settled is that two operative orders cannot coexist in the same field. The order of assessment passed on 22nd March, 1996 was admittedly amended on 27th December, 1999 in order to give effect to the appellate order. The order dated 22nd March, 1996 merged into the order dated 27th December, 1999. The Income Tax Act is a special legislation. Therefore, questions arising out of the aforesaid Act have to be answered taking recourse to the provisions contained therein. But in case of doubt or difficulty assistance can be taken from the general law of the land. The cause of action for rectification is evidently a mistake. It is the mistake, which is sought to be rectified. A cause of action to rectify a mistake, in the general law of the land, does not arise until the mistake has been discovered. Therefore, Section 17 of the Limitation Act provides that the period of limitation in a suit or an application governed by the Limitation Act shall commence from the date of discovery of the mistake. The revenue in this case is however armed with the judgment of the Apex Court in the case of Hind Wire [1995 (1) TMI 2 - SUPREME COURT]. For the aforesaid reasons, we are of the opinion that the proceedings under Section 154 were within the prescribed time and the Tribunal took the correct view of the matter. The appeal is, therefore, dismissed.
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