TMI Blog1985 (9) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... court was delivered by TULZAPURKAR J.- This appeal seeks to raise the following question of law for our determination: " Did the Appellate Assistant Commissioner of Wealth-tax have the power to rectify his predecessor's order dated June 26, 1970, in view of the fact that there was no error apparent on the face of the record because the question as to whether the Amending Act applied to assessments which were already completed was a debatable question? " The High Court certified the question to be of general public importance which required a decision of this court but, in our view, on the facts of the case, it is unnecessary to decide that question as the appeal could be disposed of briefly on the basis that the assessment in questi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the end of that clause and these words, as stated earlier, were deemed to have been inserted right from April 1, 1963. In view of this amended provision, the assessee was served with a notice dated January 25, 1972, by the Appellate Assistant Commissioner whereby he proposed to rectify her wealth-tax assessment under section 35 of the Act, withdrawing the exemption already granted to her in respect of the jewellery and ornaments. The assessee appeared and objected to the proposed rectification but the Appellate Assistant Commissioner held that his predecessor has committed a mistake apparent on the face of the record in excluding the said jewellery and ornaments and he was, therefore, entitled to rectify the order passed by his predecesso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the High Court took the view that the matter had been concluded by this court's decision in Bombay Dyeing and Manufacturing Co.'s case [1958] 34 ITR 143. But, as regards the second ground, though it was pointed out by Mr. Joshi, counsel for the Revenue, to the High Court that even that aspect had been concluded by the same decision, the learned judges felt that the point could not be said to have been finally concluded by that decision because of this court's subsequent decision in ITO v. S. K. Habibullah [1962] 44 ITR 809 and the observations made therein and, in fact, one of the learned judges who decided the matter expressed the view that " if that decision (in Bombay Dyeing's case [1958] 34 ITR 143 (SC) (p. 525 of 94 ITR)) had stood al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nse of the word. It may be pointed out that this very aspect of the matter was pressed into service in Bombay Dyeing's case [1958] 34 ITR 143 (SC) and this court while negativing the contention has taken the view that the assessment order that had been initially passed in that case (which was under section 18A(5) of the Indian Income-tax Act, 1922) could not be said to have become final in the literal sense of the word and in that behalf this court pointed out that irrespective of the question whether any appeal had been preferred or not against it, that initial order was liable to be modified or rectified under section 35 of the Act, and, therefore, could not be said to have become final or complete and, as such, the contention raised woul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rce to the facts of the present case. The Appellate Assistant Commissioner's original order whereby the jewellery and ornaments had been excluded from the computation of the total wealth of the assessee had been passed on June 26, 1970. After the amendment had come into force with retrospective effect from April 1, 1963, proceedings for rectification were undertaken by the Appellate Assistant Commissioner in January, 1972. It was well within four years of the period of limitation available to him under section 35 of the Wealth-tax Act. This is not a case where the resort to the rectification power was required to be made by reference to any provision in the Amending Act but de hors the Amending Act, power was sought to be exercised under th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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