TMI Blog1954 (3) TMI 81X X X X Extracts X X X X X X X X Extracts X X X X ..... of ₹ 50,603-15-0 was given to the petitioner. This credit represented interest at 2 per cent. on the advance payment made by the petitioner and the credit was given pursuant to the provisions of Section 18A(5) of the main Act. On 24th May, 1953, the Indian Income Tax (Amendment) Act, which is the Amendment Act, was passed and Section 13 of this Amendment Act amended Section 18A(5) of the main Act and the effect of the amendment was that instead of an assessee getting interest at 2 per cent. on the whole amount of the advance payment, the assessee was only to get interest on the difference between the payment, the assessee was only to get interest on the difference between the payment made and the amount at which the assessee was asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to have been as amended by the Amendment Act, and therefore when the Income Tax Officer rectified the assessment order, he did it on the basis that the order was erroneously made, not having been made pursuant to the law as it was amended. In our opinion, it is clear that the error contemplated by Section 35 is not an error which is due to the law being altered subsequent to the date on which the assessment order was made on 9th October, 1952, that order was in accordance with the law. As the law stood then, the petitioner was entitled to the credit of ₹ 50,603-15-0 and that was the credit that was given to the petitioner. It was by reason of the subsequent alteration of law that it may be said that the petitioner was not entitled to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... awn where this power has been expressly conferred. The first is Section 3(2) which provides that the amendments made by sub-clause (iii) of clause (b) of sub-section (1) shall be deemed to be operative in relation to all assessments for any year, whether such assessments have or have not been completed before the commencement of the Indian Income Tax Act. The next is Section 7(2) which contains provisions to the same effect, and also Section 30(2). Therefore, it is clear that the mere enactment of Section 1(2) of the Amendment Act was not sufficient to empower the taxing authorities to go behind the assessments that had been completed. If Sir Nusserwanji's contention were sound and if the effect of Section 1(2) was to make the Act retro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r was made it was on the basis of the firm being a registered firm at the date when the order was made. The law conferred the power upon the Commissioner to cancel the registration and that power was subsequently exercised by the Commissioner. As soon as that power was exercised, the very basis of the assessment order disappeared, and therefore it is clear that under Section 35 it could be said that the assessment order contained an error on the face of the record because the assessment was made on a registered firm whereas the firm was not a registered firm. It cannot be said of the present assessment order that it was made on any particular basis which basis subsequently disappeared. The present assessment order was made on the basis of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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