TMI Blog2013 (3) TMI 288X X X X Extracts X X X X X X X X Extracts X X X X ..... of additional tax is only a consequential event to the prima facie adjustment, which was carried out through the order passed under Section 154. The Assessing Authority had rightly levied the additional tax by his order under Section 154 as when the rectification of mistake was carried out by making disallowance of gratuity provision and the same has not been objected by the appellant, the consequential levy of additional tax, which is only a sequence to the prima facie adjustment also cannot be objected by them. It is not the case of the appellant that the rectification of the mistake was carried out solely for the purpose of levying additional tax. As in ACIT Vs. Saurashtra Kutch Stock Exchange Ltd. (2008 (9) TMI 11 - SUPREME COUR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al is correct in concluding that rectification of the intimation would consequently result in payment of additional tax even though intimation under Section 143(1) of the Act and rectification proceedings under Section 154 of the Act are totally different and distinct procedures envisaged in the Act ? (3) Whether the Tribunal is correct in law in affirming the rectification order passed under Section 154 of the Act to rectify the intimation issued under Section 143(1)(a) of the Act even though the said proceedings of intimation had come to an end upon issue of notice under Section 143(2)of the Act on 25.5.1993 ? 2. The assessee Tamil Nadu Magnesite Limited, Government of India undertaking has filed the return of income on 28.12.1992 for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The assessment was revised on 30.6.1993 thereby reducing the disallowance made in the intimation dated 29.4.1993. However, as provisions for Gratuity was omitted to be disallowed as no payments were made by the assessee on this account and as it was a mistake apparent from the records further revision was proposed by way of Section 154 proceedings. Before making such proposed revision, a notice under Section 154 dated 20.7.1994 was issued to the assessee calling upon its objections, if any, for the proposed revision. It is seen that the assessee did not object for the said revision and consequently, the intimation made under Section 143(1)(a) was revised thereby the gratuity provision of a sum of Rs. 4,03,887/- was disallowed. Such revised ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al agreeing with the first appellate authority, rejected the appeal filed by the assessee. 6. Learned counsel appearing for the appellant would contend that though the assessee did not object for making additions by way of rectification that itself would not entitle the Assessing Authority to levy additional tax automatically and therefore when such non-levy of additional tax is not an error apparent the same cannot be levied by way of rectification by passing an order under Section 154. In support of his contention, the learned counsel appearing for the assessee relied on the decision in reported in (2006) 285 ITR 282 (Bom) ( LML Ltd. and Another Vs. M.K.Venkataraman, Assistant Commissioner of Income Tax and Another). 7. Per contra, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al tax by his order under Section 154. When the rectification of mistake was carried out by making disallowance of gratuity provision and the same has not been objected by the appellant, the consequential levy of additional tax, which is only a sequence to the prima facie adjustment also cannot be objected by them. It is not the case of the appellant that the rectification of the mistake was carried out solely for the purpose of levying additional tax. On the other hand, admittedly, the prima facie adjustment was carried out by the Assessing Authority under such rectification thereby disallowing the gratuity provision. When the same was not objected to by the assesee and on the other hand accepted by them, the consequential levy of addition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sidering various decisions on this subject, the Hon'ble Supreme Court has observed that a patent, manifest and self-evident error which does not require elaborate discussion of evidence or argument to establish it, can be said to be an error apparent on the face of the record. The Hon'ble Supreme Court further observed that an error apparent on the face of the record means an error which strikes on mere looking and does not need a long drawn out process of reasoning on points where there may conceivably be two opinions. After observing so, the Hon'ble Supreme Court has further declared that rectification of an order stems from the fundamental principle that justice is above all and that it is exercised to remove the error and to disturb the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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