TMI Blog1998 (3) TMI 62X X X X Extracts X X X X X X X X Extracts X X X X ..... fy the mistake in the calculation of additional income-tax under section 104 ? 2. Whether the Appellate Tribunal's view that there was merger of the order of the Income-tax Officer passed under section 104 with the order of the Appellate Assistant Commissioner and, therefore, no rectification under section 154 was possible is sustainable in law especially when the points on which the appeal preferred and the rectification made are entirely different ?" The questions referred at the instance of the assessee are : "1. Whether the Income-tax Appellate Tribunal is right in holding that the order of the Income-tax Officer under sections 154 and 155(7) of the Income-tax Act did not require the approval of the Inspecting Assistant Commissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1980, on the ground that that part of the assessment order which was rectified had not been the subject-matter of the earlier appeal to the Appellate Assistant Commissioner. The Tribunal on further appeal accepted the assessee's arguments and set aside the rectification order dated November 3, 1978. On March 10, 1979, the Income-tax Officer in exercise of his powers under section 155(7) of the Act revised the assessment order under section 104 originally passed on March 25, 1977, as rectified on November 3, 1978, in view of the fact that the principal assessment order on the company's income for the year had been revised on March 10, 1978, and that order necessitated an upward revision of the amount of distributable income. The amount of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 104, has been made for that year, it is necessary to recompute the distributable income of that company, the Income-tax Officer may proceed to recompute the distributable income and determine the tax payable on the basis of such recomputation and make the necessary amendment, and the provisions of section 154 shall, so far as may be, apply thereto, the period of four years specified in sub-section (7) of that section being reckoned from the date of the final order passed in the case of the company in respect of that proceeding." The approval of the Inspecting Assistant Commissioner is required only for the proposal to levy the additional tax under section 104 of the Income-tax Act and not for the rectification under section 155(7) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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