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1962 (2) TMI 10 - SC - Income TaxWhether High Court correct for granting certificates of fitness under article 133(1)(c)of the Constitution? Held that:- the appeals have to be dismissed on a short ground which does not involve any consideration of the correctness of the construction adopted by the High Court of section 16(2) of the Income-tax Act. The only persons who were entitled to be treated as shareholders to whom the provisions of sections 16(2) and 18(5) of the Income-tax Act were attracted were the three partners in whose names the forty shares stood registered, as detailed earlier. An error had therefore been committed by the Income-tax Officer in treating the registered firm as the owner of the shares in respect of the entire number of 40 shares. It was not this initial and fundamental error that was sought to be rectified by the proceedings under section 35 ; but the removal of an anomaly in that error which continued to be affirmed ; in other words the object of the proceedings under section 35 was to carry out to its logical conclusion the error which had been committed in the order of assessment dated October 12, 1955, passed after invoking the provisions of section 34. We consider the submission of learned counsel for the respondents that the Income-tax Officer had jurisdiction under section 35 to rectify errors but not to effect merely readjustments so as to avoid illogicalities in an error which is still permitted to continue is well founded. Appeal dismissed.
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