TMI Blog2003 (10) TMI 35X X X X Extracts X X X X X X X X Extracts X X X X ..... biting the profit and loss account has not given the necessary credit in the account of the party - we may mention that under section 263 of the Income-tax Act, the Commissioner of Income-tax can correct both errors of fact and errors of law. - - - - - Dated:- 1-10-2003 - Judge(s) : M. KATJU., U. PANDEY. JUDGMENT The judgment of the court was delivered by M. KATJU J.-This is an appeal under section 260A of the Income-tax Act, 1961, by which the judgment of the Income-tax Appellate Tribunal, Delhi Bench, New Delhi, dated November 14, 2002, has been challenged. Heard learned counsel for the parties. The assessee is a company registered under the Indian Companies Act and the relevant assessment year is 1993-94. The assessment ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 36(1)(vii) of the Income-tax Act states: "subject to the provisions of sub-section (2), the amount of any bad debt or part thereof which is written off as irrecoverable in the accounts of the assessee for the previous year." To this provision an Explanation was inserted by the Finance Act, 2001, with effect from April 1, 1989, which reads as follows: "Explanation.--For the purposes of this clause, any bad debt or part thereof written off as irrecoverable in the accounts of the assessee shall not include any provisions for bad and doubtful debts made in the accounts of the assessee." In our opinion since the Explanation to section 36(1)(vii) was added with effect from April 1, 1989, it obviously applies to the present case in wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The upshot of the same is that income derived from sale of such agricultural lands cannot be treated as 'agricultural income'. Thus, the whole basis of the decision has been lost and, therefore, the order under appeal cannot be sustained and deserves to be set aside." In view of the above we are of the opinion that the assessee did not comply with the provision of section 36(1)(vii) which had been amended with retrospective effect from April 1, 1989. Thus there is no force in this appeal and it is dismissed. Before parting with this case we may mention that under section 263 of the Income-tax Act, the Commissioner of Income-tax can correct both errors of fact and errors of law. His jurisdiction is not limited to correcting errors of l ..... X X X X Extracts X X X X X X X X Extracts X X X X
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