TMI Blog1997 (6) TMI 14X X X X Extracts X X X X X X X X Extracts X X X X ..... stified in holding that--- (i) the rectification orders passed under section 154 of the Income-tax Act for all the three years are valid and proper? and (ii) the rectification orders passed under section 154 of the Income-tax Act for the assessment years 1978-79 and 1979-80 are not barred by limitation?" The relevant facts are as follows : Under an agreement between the assessee and the Kerala State Electricity Board, the assessee had taken on contract, the work of construction of a diversion tunnel measuring 12,375 ft. from Erattayar to Idukki. The work of construction of 6,200 ft. of the tunnel was given by the assessee to another firm, Aruvikkal Tunnel Constructions, as sub-contract. At the time of payment of the bills, the Kerala ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he tax deducted at source. The matter was taken in reference before this court by the Revenue in I. T. R. Nos. 29 to 31 of 1986. Since the Tribunal had heard the assessee in the present case also while allowing the appeals filed by the sub-contractors, the assessee was also a party to the income-tax reference abovementioned. By judgment dated January 29, 1990, this court affirmed the view taken by the Tribunal. It is submitted by learned standing counsel for the Revenue that the assessee herein had filed a petition for leave to file appeal before the Supreme Court, which was dismissed. It was contended by the assessee that section 154 cannot be invoked in its case as there was no mistake apparent from its assessment record requiring any r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder sub-section (3) of section 153 of the Income-tax Act that are to be applied. Sub-sections (1) and (2) of section 153 refers to the period of limitation for assessment under sections 143, 144 and 147. The relevant portion of sub-section (3) of section 153 reads as follows : "(3) The provisions of sub-sections (1) and (2) shall not apply to the following classes of assessments, reassessments and recomputations which may, subject to the provisions of sub-section (2A), be completed at any time---. . . (ii) where the assessment, reassessment or recomputation is made on the assessee or any person in consequence of or to give effect to any finding or direction contained in an order under section 250, 254, 260, 262, 263 or 264 or in an ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee cannot have any complaint that these proceedings were initiated behind his back. There is also no merit in the contention that the conditions necessary for invoking section 154 are not available in this case. The contention is that the rectification is being made not on the basis of mistake apparent from the assessment record of the assessee. If the Income-tax Officer obtains information that it is the sub-contractor who is entitled to the credit for the tax deducted at source then the error of granting such credit to the assessee is apparent from his own assessment record. Therefore, we find that even if the orders were issued under section 154 there was no lack of jurisdiction on the part of the Income-tax Officer. Now, we will con ..... X X X X Extracts X X X X X X X X Extracts X X X X
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