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1962 (1) TMI 12 - SC - Income Taxwhether relying upon clause (5) of section 35 an Income-tax Officer may rectify the assessment of a person who is a partner of a firm when the assessment of the firm is completed before the 1st of April, 1952? Held that:- Clause (5) of section 35 of the Indian Income-tax Act, which was enacted by the Income-tax (Amendment) Act, 1953, was not declaratory of pre-existing law, and as it clearly affected vested rights which had accrued to the assessee, must be deemed to have come into force from April 1, 1952. It had no greater retrospective effect than was expressly granted to it. The power to rectify assessment of a partner consequent upon the assessment of the firm of which he is a partner by including or correcting his share of profit or loss can therefore be exercised only in case of assessment of the firm made on or after April 1, 1952. The Income-tax Officer has no jurisdiction under clause (5) of section 35 of the Act to rectify the assessment of a partner of a firm consequent upon the assessment or reassessment of the firm disclosing an error made before April 1, 1952. Appeal dismissed.
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