1978 (2) TMI 121

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..... to tax the interim compensation received by the assessee pending final determination of compensation of his estate which was abolished. It is not in dispute that the Supreme Court has declared that the levy of Income-tax on interim compensation received an erstwhile holder of estate was not a valid charge in S.R.Y. Sivaram Prasad Bahadur vs. Commissioner of Income-tax, Andhra Pradesh (1). That ju .....

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..... the Income-tax Officer on 17th Feb., 1976 and that order was also challenged before the AAC. The AAC disposed of the appeals in favour of the appellant in the following words: "This decision clearly shows that the Income-tax Officer can suo moto take action for rectifying a mistake even beyond the period of limitation to give effect to the correct law of the land as laid down by the Supreme Court .....

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..... aramchand Premchand Pvt. Ltd. vs. Commissioner of Income-tax, Gujarat (2). 2. Aggrieved, the Department has filed the present appeals. Mr. Bhaskar Rao, the learned departmental representative, has contended that in the circumstances of the case there was a mistake apparent from the records entitling the Revenue to have the rectification made on 17th Feb., 1976. Elaborating this argument, he has s .....

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..... ituation and the illegality that crept into the original order of assessment dated 11th Feb., 1966 was set right by the Income-tax Officer on 4th June, 1973 as if it was a mistake apparent from the records within the meaning of s. 154 of the Act. In this case, we find that it was the pronouncement of the Supreme Court which made the whole difference in the situation and which gave the cause for th .....

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..... reme Court was not a valid ground for the exercise of his power under s. 154 on 4th June, 1973. The fact that the assessee did not keep the question alive by pursuing further remedies before the Tribunal etc. against the original order of assessment does not make any difference. No exception can be taken to the order of the AAC. 3. In the result, the appeals fail and the same are dismissed.
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